Bitcoin and XRP have both made strong recoveries since their epic plunge last month amidst the Coronavirus panic selloff that rocked the stock market. The V-shape bottom and previous top have potentially formed an ultra-rare diamond bottom pattern across the two crypto assets.
Bitcoin and XRP Aim For Further Upside After Strong Post-Collapse Recovery
Number 1 and number 3 cryptocurrencies by market cap, Bitcoin and XRP respectively, had breakout early 2020 performances, resulting in powerful rallies.
Bitcoin price grew from $6,800 to over $10,000, and XRP rose from under 20 cents to over 34 cents, before panic over the coming recession spiraled out of control, and caused nearly every major financial asset to crash as a result.
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Bitcoin fell over 50% in 24 hours, reaching under $4,000 at its low. XRP, had a similar decline, falling to just ten cents per token.
Both have since made strong recoveries, reaching levels closer to the start of the year, before the economic meltdown and pandemic-related lockdowns first began.
The price action has resulted in an ultra-rare pattern forming on the USD trading pair across both crypto assets – BTC and Ripple.
Ultra-Rare Diamond Bottom Pattern Possibly Forming on Crypto Assets
The ultra-rare pattern spotted on BTCUSD and XRPUSD price charts is named after the equally rare precious gemstone that the pattern is shaped like.
Diamonds are forever, a girl’s best friend, and more – but it’s also a make it or break it neutral pattern on financial assets, that has a 50/50 chance of breaking in either direction. Despite the uncertainty over the direction of the formation breakout, these diamond-shaped formations are typically found at the top or bottom of trends.
During diamond bottom patterns, according to chart pattern expert Thomas Bulkowski, typically volume is declining, and one side is slightly sloping upward. The volume profile matches, however, the diamonds are perfectly symmetrical.
The pattern, if confirmed with an upward breakout with volume, would take Bitcoin price to $11,700 and XRP price to over 37 cents per token, setting a new 2020 high for the long-underperforming altcoin.
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Such a move would set a higher low and higher high on longer timeframes, an incredibly bullish signal for Bitcoin and the rest of the cryptocurrency market ahead of the upcoming BTC halving, and following such an epic collapse last month.
A strong recovery here could prove that the bear market has ended on cryptocurrencies and their hard-coded digital scarcity will soon shine during an era of inflation, driven by Federal easing and constant money printing to prevent further economic crisis.
Featured image from Pixabay origin »
Analysts continue to believe in the potential price surge of XRP, predicting that it is still feasible that the crypto will hit the $3 mark. Related Reading: No Sweat! Dogecoin Will Hit $5 ‘Very Easy’ In 2025 – Analyst A market observer even claimed that XRP is on track for a massive price rally in the ongoing digital asset bull market as many cryptocurrencies are hitting all-time highs due to the positive outlook on the industry.
The XRP price recently surged to a three-year high of $1. 6, marking a significant milestone in the cryptocurrency’s recent bullish rally. This remarkable price movement has garnered the attention of many analysts as investors continue to project the trajectory of the price.
Crypto analyst Dark Defender (@DefendDark) has issued a bullish forecast for XRP, projecting a price surge above $5. 85 based on a confluence of technical indicators and chart patterns. Despite recent market stagnation, the analyst highlights several key factors—including the application of Elliott Wave theory—that suggest a significant upward movement is imminent.
On-chain data shows the XRP whales have been making deposits to exchanges recently, something that could be bearish for the asset’s price. XRP Whales Have Made Several Large Moves In The Past Day According to data from the cryptocurrency transaction tracker service Whale Alert, several large moves have been spotted on the XRP network during the past day.
On-chain data shows the total number of sharks and whales on the XRP network has seen a sharp increase recently, a sign that could be bullish for the asset’s price. XRP Sharks & Whales Have Witnessed Their Count Go Up Recently According to data from the on-chain analytics firm Santiment, the shark and whale wallets have registered a notable jump over the past five weeks.
On-chain data shows the XRP whales have participated in a large accumulation in the past week, which could be bullish for the asset’s price. XRP Whales Bought More Than 140 Million Tokens Over The Past Week As explained by analyst Ali Martinez in a new post on X, the XRP whales have increased their supply share recently.
Data shows that users on social media are overwhelmingly showing FOMO towards XRP and Litecoin, something that could be a bearish sign for their prices. Weighted Sentiment Has Spiked For Both XRP & Litecoin Recently According to data from the analytics firm Santiment, LTC and XRP are among the coins that have seen an improvement in sentiment following the recent price recovery.
