An acclaimed cryptocurrency chart and analyst, JD, recently presented a promising investment entry point for XRP stakeholders. He unraveled a powerful trading method used by savvy investors.
Historical market behavior of XRP
JDs analysis pays attention to XRP’s market dominance, a measure that reflects XRP’s price changes. As the price of XRP rises, the cryptocurrency’s market cap increases, resulting in greater market dominance. JD used chart movements from 2015 to chart XRP’s historical market patterns.
This analytical eye saw a reduction in XRP’s market dominance after its peak in January 2015, marking the beginning of a two-year downtrend. Nevertheless, the tide turned in 2017 as market dominance skyrocketed to a commendable 31.33% in May of that year. This period also saw a rapid 39x rally for XRP within a 56-day time frame.
The chartist identifies the potential for another decline in XRP’s market dominance to levels seen in early March. Such an event would prompt JD to strengthen its positions, pointing to a lucrative buying opportunity within this zone. This region coincides with the 0.618 and 0.786 Fibonacci points, often used by traders as key support or resistance levels.
JD advises investors not to get stranded in the market turmoil. He discourages blind adherence to the “hold” strategy down to the 0.618 Fibonacci level, and warns against the mass mentality that often leads to heavy losses.
How XRP is doing now
Currently, XRP is displaying a cup and handle chart pattern, where the price fluctuates between the daily moving averages. This pattern is typically a bullish sign, indicating a period of consolidation before a possible breakout.
A successful break and close above the daily moving averages of 50 and 200 would be a sign of strength. This could pave the way for a rally towards the $0.565 to $0.584 level. However, if the sellers successfully resist these advances and push XRP below the $0.45 immediate support level, the currency could drop to the robust $0.415 support level. At the time of reporting, the value of XRP is at $0.468.
