Majority of cryptocurrencies saw a spike on Monday with Bitcoin leading the way. Most cryptos erased the majority of the gains by the end of New York’s trading session. But Ripple’s XRP was able to keep above 8% of the gains. This is impressive compared to Bitcoin’s 4% and Ethereum’s 5% in the top 3 major cryptos by market cap. The spike in these cryptos may have been as a result of a selloff in Tether’s USDT, which ended up being the only altcoin in the red on Monday. Another big winner on Monday was Tezos (XTZ) which gained over 9% on the news that the crypto exchange, Kraken, has added the coin to its list.
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Comparing Ripple and Bitcoin on the Charts
Now let’s take a look at Bitcoin and Ripple ’s price action on the daily chart, to see if their respective gains today were correlated from a technical point of view. BTC/USD’s spike was unable to confirm a break above the daily Ichimoku cloud, and the key pivot level of $6,722.
Meanwhile, XRP/USD is already above the daily Ichimoku cloud, and the door for further gains already opened on September 20th when XRP started a new uptrend. Ripple’s XRP is now supported by the Ichimoku cloud, and even though it began to pull back on Tuesday, it still hasn’t shown signs of a bearish reversal.
This comparison is interesting because up until this point, most cryptocurrencies have merely ridden on Bitcoin’s wave when it comes to price action. But Ripple may be ready to break this pattern. More specifically, while Ripple has already broken a key resistance level, Bitcoin still needs a solid bullish confirmation for long-term strategies.
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What do you think about the recent price action in Bitcoin and the rest of the market? Do you think the recent bullish wave is here to stay across the board? Let me know in the comments, and subscribe to get more updates! As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
Don’t forget to complete your risk management due-diligence before developing your investment strategy.