As opposed to Bitcoin, Bitcoin Cash and Ethereum (which are all in downtrends), Ripple may have bottomed.
Ripple has been snubbed of late, criticized for the lack of uptake on the alt-currency since only a small number of financial institutions are willing to use the third-most popular cryptocurrency.
However, a partnership with UAE Exchange has put the bounce back in Ripple's prospects. UAE is among the largest money transfer agencies in the Middle East. It claims 6.75 percent of the market share of the $575 billion global money transfer business. And it has ambitions to build its market share up to 10 percent. To that end UAE has announced that it will be adopting Ripple for its cross-border payments. According to Arabian Business, "this makes it the larges UAE-based exchange to incorporate blockchain technology into its daily operations."
This bold partnership with Ripple is a win-win, for both the cryptocurrency and UAE. It demonstrates UAE billionaire owner Bavaguthu Shetty’s seriousness about his market stake ambitions.
XRP/USD Daily Chart
The price of the alt-coin broke to the upside of its downtrend line since January 4, either on the coattails of Bitcoin's bounce and/or on informed money buying XRP before the partnership made the press.
The leading momentum RSI indicator provided an upside breakout on February 6, one day before the price had done so, as well as a secondary upside breakout of its downtrend line since January 18 (red line); and the lagging moving-average comparison MACD indicator confirmed a buy signal on Saturday.
The February 6 $0.57227 trough bounced off the 200 dma (red) and Saturday crossed above the 100 dma (blue).
While the price broke on the upside of the January 18 downtrend line (red line), it retreated, forming a bearish Shooting Star. It is currently retesting the $1.00 level. It opened above the shorter downtrend line, but possibly only because the trendline falls with each passing day. The $1.2300 Shooting Star resistance should be the test of an upside breakout.
Note, the trend is still down according to the peak-trough succession. Only when two peaks and troughs would post higher would the trend be truly reversed. However, crossing a trendline is the first sign of a potential reversal. Note, that the last two troughs might be forming a H&S bottom, due to the congestion, reducing the steep of the final trough, relative to earlier ones. Also, note the RSI is showing that momentum has even slowed down more sharply.
Trading Strategies
Conservative traders would wait for clarity, either with a complete reversal with two peaks and troughs in a rising formation and go long, or with a trough lower than the former, February 6, $0.57227 trough (potential H&S head) and go short with the reaffirmed downtrend.
Moderate traders may go long with a stop-loss below yesterday’s $0.8920 low.
Aggressive traders may enter a contrarian trade, with a stop-loss above $1.2300, the Shooting Star resistance, as the price may retest the $0.70 consolidation area.
By Investing.com (Pinchas Cohen/Investing.com)
https://www.investing.com/analysis/chart-of-the-day-200289392