Ripple’s XRP, Stellar Lumens XLM, and EOS were among the top gainers in top 10 cryptocurrencies by market cap on Wednesday. But the gains weren’t enough for neither of them to form a solid bullish reversal chart pattern.
Ripple (XRP) Overview
Ripple’s gains came after the news that MasterCard has been mentoring Ripple since 2011 according to an interview that was published on Twitter on September 11. While Ripple has been clear that the company doesn’t really have a lot to do with Ripple’s XRP, many market participants take MasterCard’s mentorship as a positive implication for the cryptocurrency.
Looking at the charts though, XRP has been hanging around the 4-week low of 0.2550 while traveling below the daily Ichimoku cloud.
If the positive news keeps the bullish market sentiment energized, we may see a medium-term double-bottom chart pattern forming on the daily time-frame, with the neckline at 0.36 and profit-taking resistance at the 23% Fibonacci level of 0.42.
But since Ripple and other altcoins take most of their signals from Bitcoin’s movements, we may not see a major bullish reversal in them before Bitcoin decides to start its renewed uptrend, as I talked about in yesterday’s update.
Don’t forget to complete your risk management due-diligence before developing your investment strategy.