Wednesday, 1 July 2020

XRP Price Can Outperform Bitcoin in the Short Term — Here’s Why

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 As Bitcoin's price continues to range sideways, the momentum may be shifting to XRP for the next big move.



Bitcoin's (BTC) sideward price action of late has been a hunting ground where whales can easily liquidate misinformed traders on leverage trading platforms. Without decent swings, any asset can become boring.
But let’s not forget BTC isn’t the only cryptocurrency out there, as several altcoins are currently staging somewhat of a comeback. However, there’s one coin that doesn’t seem to be having a good time lately, namely XRP, the fourth-largest digital asset by market capitalization.
So, in today's analysis, I’m going to look at whether holding XRP is likely to be more fruitful than BTC in the short term.



The bigger picture for Bitcoin

 Starting out with the weekly chart, one can see why the bears favor this timeframe. Bitcoin is forming a massive pennant that is far clearer now than it was before the March 12 black swan event. 

btc weekly chart


Typically, pennants break toward the end of the pattern, sometimes a little before. However, they are invalidated after. As things stand for Bitcoin, a breakout or breakdown could occur any time between now and approximately September 2021, 14 months from now.

With the current price around $9,156, a small 6% increase would put Bitcoin on the resistance line, and this is why we have failed to reclaim $10,000. But at this rate, reclaiming just $9,750 would be a welcome breakthrough for the bulls.

On the flip side, there is a massive 47.42% gap from the current price to the support of the pattern. This puts a figure of $4,500 as a potential target, which may be a great opportunity to stack some sats. But is this just wishful thinking from overly aggressive bears that shout “burn this Ponzi to the ground?”

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