The past few days have not been good for the crypto markets. After the market leaders Bitcoin, Ethereum, Ripple’s XRP and smaller altcoins peaked last week, they saw their value tank.
XRP was hit particularly hard by the retracement, falling from its multi-month high somewhere above $ 0.34 to $ 0.265 during the Wednesday Flash sell-off that brutalized the bulls and liquidated $ millions of Bitcoin positions on BitMEX and other leverage exchanges.
Despite this brutal price drop of the third largest cryptocurrency by more than 25%, analysts remain bullish and tout a number of indicators that suggest that bulls may be grazing again in the XRP fields soon, so to speak.
Ripple’s XRP prints a barrage of strong characters
Popular crypto commentator CJ recently noted that XRP’s chart setup suggests that there might be a strong upside breakout soon.
In his diagram, he represented the fact that XRP has built a falling wedge pattern over the past two weeks that breaks up frequently. Wedge CJ ended at the high end of a demand zone (which can act as a support region) around $ 0.24, adding the potential for the wedge to break up – something the analyst is suggesting will push the XRP to $ 0.35.
$ XRP – That would be nice. pic.twitter.com/2I1gXOYLyn
– CJ (@IrnCrypt) February 22, 2020
This is by no means the only technical sign that could help Bullen develop further.
According to previous reports from NewsBTC, the indicator for HODL2100K, the IchiEMA, has printed a buy candle on the weekly chart of the cryptocurrency. This signal was seen two weeks before the infamous spike in the altcoin in late 2017, when the asset rose over 1,000% in less than a month, rising from $ 0.20 to above $ 3.00.
Also, the eerily accurate trader Financial Survivalism suggested the asset could hit $ 0.70 this year. He backed up this forecast with the following factors: the Heiken Ashi candles have turned green every week, implying a reversal, the cryptocurrency has turned a key horizontally into support and has broken over a falling wedge pattern, increasing the Taurus fall.
Related Reading: This Chinese Whale Lost $ 45 Million Overnight in Bitcoin and BCH: How It Happened
Veteran trader warns of steep retracement
While there are these technical factors, some aren’t sure XRP is ready to see the powerful breakout suggested by CJ and his contemporaries.
Veteran commodities analyst Peter Brandt warned his followers that XRP is head-and-shoulders printed in the form of a textbook, characterized by two shoulder-like segments of price movement and a blow-off top in the middle.
It will be interesting to see if this H&S top works. If so, the target would be .2071.
This tweet offers a possibility. This is not a prediction. pic.twitter.com/IJiMR2AEnV
– Peter Brandt (@PeterLBrandt), February 20, 2020
Brandt noted that if this textbook pattern were played out, the cryptocurrency could fall to $ 0.2071 – around 23% lower than the current market price of $ 0.27 – because that’s where the measured movement of this pattern lies.
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