Ripple (XRP) is expected to rally hard in the weeks ahead as the price is now ready to break out of the bullish pennant that we see on the 4H chart for XRP/USD. There might be some sideways movement short term but this is because a lot of investors are still afraid the price might fall further. Once they realize that the price is in fact rising to test the previous market structure, they are going to board the train. RSI for the 4H chart shows that there is plenty of room for a rally to the upside and no strong barriers. All that is needed at this point is bullish momentum to return back to the market so the price can break above the bullish pennant.
Based on the price action on the 4H chart for XRP/USD, we expect that this move might come in as early as Valentine’s Day. Once again, XRP/USD will prove to its investors that it is worth all their love and support. If it were not for the recent sideways movement in Bitcoin (BTC), Ripple (XRP) would have already taken off towards $0.50 on news of partnerships and adoption of its XRP token by major financial institutions for use instead of their nostro and vostro accounts. We have seen XRP/USD made independent moves in the past and it would not be surprising to see the same happen this time if BTC/USD continues to stall a correction to the upside. If this was any other market, we would have seen a definitive move by now. However, the fact that so many institutions are preparing to get into cryptocurrencies, it is reasonable to expect that they are going to stall as much as they can while they accumulate.
Chart for XRP/USD (1D)
For mainstream investors, accumulating cryptocurrencies of their choice might not be a big deal but with major banks and hedge funds it is a whole other story. For instance, if a bank like Goldman Sachs wants to buy Bitcoin (BTC), it will need a lot of time just to fill its order even on an OTC exchange. If they were to accumulate something like Ripple (XRP), they will have to go through an even more complicated process as they will have to find individuals who are willing to sell their coins in large number to a bank just when the market is about to recover. This is why we are seeing all this consolidation and sideways movement.
The big players in the game know exactly what is going on; it is the retail investors that are losing their patience on every other day of consolidation and thinking to themselves if the market is going to fall further. If it were not for their own interests, the whales would have moved this market upside down to shake out all the retail investors so they can accumulate their coins dirt cheap before the next rally. However, they know full well that if they spook the horse beyond the point of no return, they might lose it. So, they want to instill fear in the market but to the extent that ensures that their long term investments are safe. This is why long term investors should pay no mind to short term manipulation and remain focused on the big picture.
Source: Crypto Daily