Analyst Says Bitcoin (BTC) Weakening, but Crypto Markets Can Rally This Week After Fed Meeting

August 25, 2022 The Daily Hodl

XRP price chart ‘double bottom’ puts next bullish target at $1

August 11, 2021 Coin Telegraph

<div>XRP price chart 'double bottom' puts next bullish target at </div>

The classic "double bottom" pattern's success rate of hitting its profit target lies around 78.55%.

Ripple's XRP token could hit $1 in the coming sessions per a classic technical chart setup.

Dubbed as "double bottom," the trend reversal indicator appears after the price bottoms out at a level, rebounds toward a higher resistance level, and then pulls back to or near the first bottom level, only to rebound again to the previous resistance line (also called neckline).

Should the price close above the neckline, it anticipates an extended move upward, the length of which equals the total height between the neckline and the bottom level. So it appears, XRP is closer to executing the said pattern entirely, as shown in the chart below.

*XRP double bottom setup in play. Source: TradingView.com*

XRP/USD formed the first bottom at $0.65 on June 22 and rebounded towards its neckline resistance at $0.75. It fell again to log the second bottom level at $0.51, followed by another retracement toward the $0.75-resistance and a subsequent breakout.

In other words, XRP has a decent chance to test $1 as its double bottom pattern's profit target.

In fact, research conducted by Samurai Trading Academy shows that double bottoms have a 78.55% success rate.

On the flip side, XRP's daily relative strength indicator, or RSI, alerted about its interim excessive valuations. At 72.29, the RSI reading was two points into the overbought region, hinting at an imminent sell-off period in the sessions ahead.

Fundamentals

XRP price surged by 77.39% to $0.91 after bottoming out at $0.514 on July 20.

A majority of its gains came in the wake of a market-wide upside rally, led by the euphoria surrounding Ethereum's milestone software update.

The ETH/USD exchange rate surged 89.13% to $3,235 after bottoming out on the same date as XRP—on July 20—at $1,718.41. As a result, it appears XRP merely tailed the crypto market trend, thanks to its 0.69 positive correlation efficiency with Ether, as per the 30-day average data collected by CryptoWatch.

SEC vs. Ripple update

In the latest events, the U.S. Securities and Exchange Commission (SEC) failed to turn up the internal documents despite two orders from Judge Sarah Netburn on request from the defendant, Ripple Labs.

In detail, Ripple Labs had filed a motion in early June to compel the SEC to turn over its internal communications regarding XRP's rival cryptocurrencies, Bitcoin and Ether. Judge Netburn approved the motion, but SEC did not deliver even a single document.

Financial Feeds noted that Judge Netburn can order monetary sanctions against the SEC for not complying with a court order. More so, she can even dismiss the U.S. securities regulator's case against Ripple Labs should the former remain uncooperative.

Meanwhile, SEC chairman Gary Gensler asserted in his response to Senator Elizabeth Warren that their means to determine whether a crypto asset is a security or not is clear, adding that:

"The SEC has taken and will continue to take our authorities as far as they go [...] We haven’t yet lost a case."

I find it funny He pointed out they had never lost a case. That is because most don't have the capital or willing to risk everything to continue to fight a rigged fight. Unfortunately for @SECGov they have Met their match with @Ripple
— JIM MARSHALL XRP (@jimmars74259096) August 11, 2021

The SEC vs. Ripple lawsuit, which started in December 2020, damaged XRP's investment prospects. The Ripple token's value fell by almost 80% in a month (to $0.168). It also faced delisting across regulated exchanges, including Coinbase, Bitstamp, Crypto.com, OKCoin, Wirex, and others.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Ethereum eyes rally to $3K, with 39% ETH price rebound triggering a classic bullish pattern

July 26, 2021 Coin Telegraph

Ethereum eyes rally to K, with 39% ETH price rebound triggering a classic bullish pattern

Altcoin Analysis

A falling wedge setup, as well as a rumor of Amazon preparing to accept cryptos, also boosts Ether’s upside appeal.

The price of Ether (ETH) jumped to a three-week high on Monday, triggered by similar gains in the Bitcoin (BTC) market that appeared in the wake of rumors about Amazon’s foray into the cryptocurrency sector.

A job posting from the retail giant showed that it is seeking an executive to build its “digital currency and blockchain strategy.” Meanwhile, global media reports have been speculating, based on inside sources that Amazon would start accepting Bitcoin as payments. As a result, the BTC/USD exchange rate surged to its six-week high after the news.

Ether, whose 30-day correlation with Bitcoin stands at 88%, surged likewise on Amazon’s crypto integration rumor. On Monday, the ETH/USD exchange rate soared to an intraday high of $2,390, reaching its highest level since July 8. The pair was up more than 6.7% as of 12:20 GMT.

*Ether bottomed out twice in a row near $1,700 in recent sessions. Source: TradingView*

However, measuring from its previous bottom of $1,720 on Tuesday, the net upside rebound came out to be 38.94%. The retracement looked strikingly similar to the bullish price action between June 22 and July 7, wherein ETH/USD rebounded by more than 40% after bottoming out at $1,700.

That said, Ether bottomed out twice near the $1,700 range before rebounding higher by 38%–40%. Analyst Jonny Moe spotted that mirrored retracements move and ruled them out as a double bottom pattern.

The bullish setup

In detail, double bottoms are bullish trend reversal patterns, consisting of two troughs around the same level hanging by a neckline resistance. As it plays out, the price eventually flips the neckline resistance as support and rallies higher by as much as the maximum pattern’s height.

Ether fits the description. It has formed two consecutive bottom levels at around $1,700. Meanwhile, its neckline resistance is near $2,390. Therefore, the maximum pattern’s height is $690.

*Ether's double bottom setup envisions price at or around $3,000. Source: TradingView*

Should the ETH/USD rate break above the $2,390 neckline resistance, accompanied by a spike in volume, the pair will be expected to extend its upside move by approximately $690. That would roughly take it toward $3,000 (with $2,948 serving as a psychological bullish target based on historical price action).

Confluence

Another technical pattern in play outdoes the double bottom setup’s upside target by predicting Ether prices at near $3,250.

Dubbed as a falling wedge, the pattern develops when the price trades lower inside a range that begins wide but contracts during the downtrend. It eventually prompts the price to break bullish while setting up its profit target at a level situated typically above the wedge height (if measured from the breakout point).

*Ethereum's falling wedge setup. Source: TradingView*

So, it appears, the ETH/USD exchange rate is undergoing a bullish breakout confirmed by a high-volumed close above the wedge resistance trendline. The profit-taking target for the current setup is $1,208 above the breakout level, which puts the price en route to $3,257.

Double Bottom