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.
Related Reading | $5,000 is the Next Logical Target For Bitcoin, Cloud Indicates
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 »
XRP has spent the past several weeks moving sideways around the $2. 00 level, even as headlines around Ripple and the broader XRP ecosystem continue to stack up. Related Reading: Dogecoin Holds Demand Zone Above $0.
XRP has struggled to create any upside traction over the past few days, with the price rejecting above $2. 15 in the middle of the week and now back to lingering just above the $2 level. A new long-term technical comparison shared by crypto analyst ChartNerd places XRP’s price behavior since its July all-time high of $3.
XRP spent the past week caught between rising institutional demand and stagnant price action, creating a compression zone that traders say is becoming increasingly difficult to ignore. Related Reading: Wall Street Storms Ripple In Explosive $500 Million Deal Even as U.
The XRP market just hit a historic milestone as the first U. S. spot XRP ETF, Canary Capital’s XRPC, officially debuts on Nasdaq, sending bullish shockwaves for the XRP price and other assets in the market.
XRP has spent the past week on the continuation of a downtrend from the previous week, slipping from above $2. 50 before rebounding around $2. 12 and now hovering around $2. 30. The price action reflects a market struggling to find direction, caught between bullish optimism and lingering selling pressure.
XRP community figure Diep Sanh made a tongue-in-cheek prediction about future market behavior, saying investors would be “Shi**ing their pants” if XRP slid from $1,200 to $1,000 sometime around 2070.
XRP has been a top performer during this recent bull market, beating Ethereum and almost all other cryptocurrencies in ROI. But could a recent bearish signal suggest the top altcoin could drop by 70-80% from current levels? XRP Triggers Bearish Crossover of Monthly LMACD XRP monthly LMACD has crossed bearish for the third-time ever The two past bearish crossovers resulted in an 87% and 71% drawdown AFTER the signal fired The signal is still unconfirmed, so bulls must push price much higher this month or risk seeing the signal confirm pic.
