In summary:
- According to MagicPoopCannon, XRP is clearly in a downtrend
- Since the summer of 2019, XRP has been trading below the 200-week moving average
- XRP is also exhibiting a weekly death cross pointing towards a prolonged bear cycle
- However, XRP has found some support on the 50-week MA
- XRP is also forming a long base of support similar to 2017’s but it does not guarantee a price explosion
Veteran crypto analyst MagicPoopCannon, has published his recent take on the state of XRP in the crypto markets. According to Magic, XRP is clearly in a downtrend that has its roots in the summer of 2019 when the digital asset’s value fell below the 200-week moving average. Additionally, XRP has formed a death cross on the weekly chart.
Trend: The trend is clearly down. You can see that price has been consistently printing lower highs and lower lows, since early 2018
Moving Averages: You can see that price first fell below the 200 week moving average (in purple) in the summer of 2019. XRP has consistently failed to rally back above the 200 week MA. It has been rejected there on the past three major attempts.
Weekly Death Cross: You can see that the 50 week MA has crossed below the 200 week MA, which is a sign of prolonged weakness.
Below is a screenshot of the chart that accompanies Magic’s analysis of XRP/USD on Tradingview.com.
It is Not a Guarantee XRP’s Price Will Explode like in 2017
With respect to potential bullish indicators for XRP, Magic pointed out that XRP’s price has held the 50-week moving average – shown in orange in the chart above. XRP has also managed to break out from the falling wedge shown in blue and is testing the wedge’s upper boundary as support.
Magic adds that XRP has been forming a long base of support similar to the one seen in 2017. However, he cautions that it should not be interpreted that XRP will explode in value as it did back then.
The Base: XRP has been forming a long base of support, as it did before it erupted in 2017. It’s not a guarantee that price will explode again, but it is a sign of stability.
Conclusion: XRP is In Neutral Territory
In his concluding remarks, Magic explained that XRP is in neutral territory.
Overall, the outlook for XRP is neutral right now. A breakout above the 200-week moving average (around 0.345) would be very bullish , as it would establish a higher high while also taking out major resistance at the 200 week.
However, a breakdown below the 50 week moving average would send XRP back into the blue falling wedge , and that would be particularly bearish .
If that happens, the 50 week MA would have failed to hold as support, and the breakout of the falling wedge would be a failure as well. Such a move could cause XRP to fall below 0.10.
