XRP had a very rough time since the SEC allegations. In the 6 months prior to that ‘event’ XRP was shaping up to become the most powerful chart setup in history of markets. But this disruptive change triggered by the SEC allegations in December of 2020 created serious damage, and XRP went from most powerful ever to most concerning in a matter of weeks. What is happening with XRP 3 to 4 months later, and is our 20 USD XRP forecast valid or not?
It has been rough, it has been very rough for XRP.
And in the end if you think about it the SEC published their allegations in the week that XRP was moving to 3 USD. It was there, in the chart, with 100% certainty confirmed by experienced chartists in the team of InvestingHaven.
What the SEC did, in reality, is that it ‘punished’ XRP holders, not Ripple nor the people they accused in their allegations. XRP holders got a beating, a serious beating, and the disruption on the XRP chart is shown below.
The first green box (left hand side of the chart) shows the smoothness, and the preparation of XRP’s intent to move to 3 USD, our first target. It is clear in hindsight how much damage was created by the SEC.
One could argue that the SEC hit the wrong audience, and the wrong point in time.
But these are markets, and every investor should accept that markets are not there for them. Investors should accept that anything can happen at any time in markets. We do accept this reality, too many investors don’t.
The left hand part of the chart shows smoothness, as of mid-December it becomes as ugly as anyone can imagine.
Interestingly, in recent weeks there is an attempt to turn smoother, more constructive … and we do know that a smooth chart suggests that buyers and sellers find consensus in the dominant direction. The direction we see is up, where a cup-and-handle formation is now in the last phase of completion. The cup was the violent decline in Dec/Jan, the handle is the small green box (March).
If we adust the chart, the same chart, we get the setup that is shown below. It’s the same but it’s different. And it shows the intention of XRP to finally break out.
Whether this breakout will succeed next week or not is the million dollar question. Much will depend on BTC, leading indicator for crypto markets, and whether Crypto’s 2021 Moment Of Truth will resolve higher or lower.
We flashed several coin tips in recent weeks, and they will be outperformers provided a continuation of BTC’s uptrend. XRP is one of them, in fact it is the last coin we tipped with serious upside potential. Premium crypto members got more details about the coins that are ready to take off, in Friday’s crypto alert, but also get our insights about the potential bearish scenario that might play out. As crypto investors you always (ALWAYS) have to take both bullish and bearish scenarios into account, because more than in any other market it is about protecting downside (first and foremost) while maximizing upside (in this sequence).