XRP is expected to consolidate in a narrow range. If support at $0.44 holds strong, XRP should be preparing a secular breakout in the not too distant future. In this process, the most important chart to watch is not XRPUSD but XRPBTC, this is why.
RELATED – XRP price prediction
In this short blog post, we look at important developments for XRP holders and enthusiasts.
One thing to note:
No matter how exciting and promising XRP looks, fundamentally, it remains a token that will follow the dominant trend of BTC. Consequently, bullish momentum in XRP will be limited without participation of ‘king BTC’.
The above point has important implications for smart investors (hint: buy the dip designed strategies might work out well for long term oriented crypto value investors).
XRP in the news
August 7th, 2024, was an historic moment for Ripple (indirectly also for XRP) in the legal debacle with the SEC.
Equally important was August 27th, 2024 – SDNY Issues Final Ruling on SEC v. Ripple:
Earlier this month, the Southern District of New York issued its final ruling and remedies order in Securities and Exchange Commission v. Ripple Labs, Inc. Judge Analisa Torres found that the SEC failed to show that any investor was harmed by Ripple’s sales of the crypto asset XRP, rejecting the SEC’s disgorgement theory.
The news about XRP, lately, is overwhelmingly positive.
Similarly, Ripple is making great progress.
RELATED – Is There A Future For Crypto Or Is Crypto Dead?
It seems there is traction in the XRP ecosystem, after many years characterized by uncertainty.
This idea is further fueled by the strong relation between XRP and institutions that are connected to Ripple. In the end, the next wave of the crypto bull market will be dominated by institutions flowing into the crypto universe.
XRP price analysis – the chart that truly matters
While the focus of many is on the XRPUSD chart, we believe the one XRP chart that truly matters is XRPBTC.
As shown, below, XRPBTC turned its downtrend into a new uptrend.
We derive one truly important conclusion from our XRP analysis – the green shaded area which marks multi-decade support in XRPBTC (below chart) is the most important level to watch across all XRP price charts.
All the rest is noise!
Consequently, the next BTC dip, which is due to occur in the coming weeks (not later than mid-September) should confirm relative strength in XRPBTC on a 3 to 5 day closing basis.
XRP – what does not matter
We will be very critical in what follows.
While we never analyze the work of other analysts, this time around we want to share thoughts with readers about what NOT to do when it comes to XRP price and chart analysis.
Be very, very careful with charts and commentary like the one shown below (source: X). This statement and chart analysis is wrong, simple as that. XRP did not break out yet on its secular timeframe. If a breakout occurred, it was on a low and meaningless timeframe!
I don’t think people UNDERSTAND this about #XRP yet!
Read and look #XRP is tricking many people because it is currently playing close to this green multi-year resistance.
But what people don’t know is that #XRP has actually broken out and its on the other side of it! pic.twitter.com/6M19hlYVzM
— Random Crypto Pal August 24, 2024
Similarly, while we agree that low volatility is a favorable condition for a breakout, it is not a primary or leading indicator. In other words, low volatility may persist for a long time or may even resolve lower (in case of conditions that are not favorable).
The volatility has fallen below the 2017 level.
This means a huge breakout and rally looming as it was in 2017 and 2020. pic.twitter.com/tAFyE0OHGG
— Mikybull Crypto August 28, 2024
While we believe that XRP is eventually going to stage a secular breakout, we believe the time is not right, not yet.
The only focus, for the coming 2 months, is support on the XRPBTC chart combined with support on the secular XRPUSD chart.
Again, the rest is noise.
We will inform our premium crypto subscribers when prime time starts in XRP. You can receive our premium crypto alerts as well, and get instant access to our latest crypto alerts.
