Through a collapse of bullish accumulation setups, Ripple XRP maintained a bearish outlook from the last quarter of 2018 into the early part of Q1 in 2019. The first quarter of 2019 though started with bearish sentiment, slowly transitioning into a bullish trend. Read on as we look at the important news and technical price patterns driving the current bullish trend, moving forward into Q2.
Research: Vulnerabilities found in some Addresses of Bitcoin, Ethereum, and Ripple
According to reports from research carried out by the University of California and DFINITY Foundation, a portion of Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH) addresses are exposed to attacks.
On January 16 ’19, Ripple released a counter statement emphasizing that software libraries issued before August 2015 potentially show vulnerability in multiple transactions signed by private keys.
Never the less, the research paper shows that the attack can be prevented by deploying the deterministic ECDSA nonce generation, which Ripple claimed has been implemented in their software since August 2015, therefore making addresses connected with the blockchain using modern software libraries secure from this vulnerability.
Messari: $535.56 Million of Ripple (XRP) Sold, as well as Possible Overestimated Market Capitalization
Messari, a cryptocurrency analytics firm, found that Ripple’s market capitalization may be overrated by approximately $6 billion from observing the firm’s 2018 Q4 report.
It was also documented in the report that $535.56 million worth of Ripple (XRP) was sold in 2018, with 2018 Q4 token sales amounting to worth $129.03 million, a value equivalent to 0.24 percent of global XRP volume.
SBI Reports: Ripple is Recognized for Cross Border Payments
The Japanese finance giant SBI Holdings released its nine-month financial report On January 31, where it highlights Ripple’s potential for cross-border remittances for the period ending on December 31, 2018.
Technology implementations by Ripple (XRP) and blockchain consortium R3 was also outlined by SBI as a major part of its strategy to enable a global standard for financial operations such as international payments and trade finance.
According to SBI, Ripple’s XRP is the first cryptocurrency that is supported by R3’s Corda Settler, a recently launched decentralized application that supports both traditional and blockchain-based payment duties on the Corda blockchain to be reconciled via all global payment systems.
XRPUSD: Weekly
Starting from the early part of the first quarter, the price of XRP-Ripple crashed through critical bullish accumulation support 0.33872 on 07 Jan ’19, and later eased into a low volatile range. The pair on 18 February ’19 triggered a bearish accumulation pattern, which was later followed by an opposite double bullish accumulation pattern on 04 and 11 March ’19. Patterns such as the double bullish accumulation with critical support at 0.29521 show a transition and bottoming from bearish to a bullish trend.
XRPUSD: Daily
A view from the daily chart shows a breakout from a rising triangle initiated by a bullish hidden divergence pattern on 26 March ’19 and confirmed by a golden cross of the MACD oscillator. The exchange rate of the XRP skyrockets by 18.8% at press time.
XRPUSD: 4HR
The latter part of the first quarter, from a 4hour time frame, entered into a bearish trend, which was first triggered by a combination of bearish hidden divergence and breakdown of double bullish accumulation on 16 March ’19 12:00. The bearish trend persisted by triggering a double bearish accumulation pattern on 21 March ’19 08:00, and a breakdown of bullish accumulation on 22 March ’19 20:00.
Upon establishing strong support at 0.29850, signals to enter long was confirmed after the Bulls beat the bears to a breakout of bearish accumulation on 31 March ’19 08:00, and 02 Apr ’19 00:00, which sent the XRP price rising by 18.7% and 16% from the breakout levels.
XRPUSD: 1HR
Similar to the 4hour time frame, the 1hour chart illustrates the exhaustion of bears as they equally failed to a breakout pattern on 01 April ’19 12:00, 02 April ’19 02:00 respectively. The above chart also shows the dominant presence of bulls through 4-consecutive bullish accumulation on 01 April ’19 01:00 – 04:00, and 02 April ’19 07:00 – 09:00.
The bullish pressure intensified with the XRP again breaking through bearish accumulation on 02 April ’19 16:00
Conclusion and Projection
The critical support level of 0.2985 signaled by the double bullish accumulation pattern on the weekly chart ushers in the start of a bullish trend going forward into the second quarter of 2019. Significant news announcements in Q1 tend to reinforce a positive adoption rate of the XRP in the traditional financial sector. From our analysis, the pair is projected to attain the 0.46669 resistance level.
Featured image by Marco Verch
