{"id":433591,"date":"2020-08-06T20:00:11","date_gmt":"2020-08-06T20:00:11","guid":{"rendered":"https:\/\/wncen.com\/?p=433591"},"modified":"2024-06-11T14:06:11","modified_gmt":"2024-06-11T14:06:11","slug":"xrp-momentum-macd-calm-storm-surge","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/xrp-momentum-macd-calm-storm-surge\/","title":{"rendered":"Why XRP’s Waning Momentum May Be The Calm Before The Storm Surge"},"content":{"rendered":"
XRP<\/a> investors are eager to see their altcoin of choice get back a lot closer to all-time high valuations. The crypto market underperformer recently regained its number three rank thanks to an over 45% one-week rally.<\/p>\n However, things have since cooled down. Why is momentum currently waning, and what does this mean for an extended recovery? The same indicator on lower timeframes points to a pause from bulls, but on high timeframes suggests this is the calm before the storm. What can altcoin investors expect?<\/p>\n A rebound from nearly three years of a bear market<\/a>\u00a0takes time to recover from. First, momentum from the downtrend needs to decline, while positive momentum from bulls begins to build. After a phase of equilibrium where supply and demand reach a stalemate when the odds tip once again in the favor of bulls, a new uptrend begins<\/a>.<\/p>\n That is exactly what XRP investors have been hoping for, after watching the asset fall over 99% from its all-time high of over $3.50 token. At the low this past Black Thursday, Ripple traded at just ten cents briefly.<\/p>\n The epic fall set the bottom and from there the asset has recovered over 200%<\/a>, potentially giving bulls confidence to turn things around for good.<\/p>\n <\/p>\n But before that happens, the recent rally appears to be pausing or running out of momentum. According to the moving average convergence divergence indicator, a momentum measuring tool, the asset has reached overbought conditions. There’s also a bearish divergence<\/a> on the MACD on daily frames.<\/p>\n Related Reading | Short-Term XRP Target At 40 Cents, What Ripple\u2019s Long Road To Recovery Looks Like<\/a><\/strong><\/em><\/p>\n These factors indicate that a temporary pullback is likely in the asset and a pause in price action possible. But it may simply be the calm before a major surge in XRP.<\/p>\n A ripple-effect may have already begun the moment the monthly MACD turned bullish for the first time in over two years.<\/p>\n The same tool that is showing a pause in bullish momentum and overbought conditions on daily timeframes, on higher timeframes is signaling that a new uptrend is only just now starting.<\/p>\n <\/p>\n The moment the trend turned bearish, a red, negative reading on the MACD’s histogram began and lasted all throughout the bear market. A green flip on monthly timeframes may suggest that a new bull market has started<\/a>, but hasn’t fully ramped up yet.<\/p>\n When the two moving averages converge and cross, it can act as a powerful buy or sell signal. This bullish crossover is underway right now on XRPUSD monthly charts, coinciding with a 200% rally already, a green flip on the histogram, and an environment ripe for inflation.<\/p>\n Related Reading | Silver Fractal: Are Crypto Altcoins On the Cusp of an Explosive Surge?<\/a><\/strong><\/em><\/p>\nXRP Rebound Takes Pause, But Are Bulls Preparing An Even Stronger Push?<\/h2>\n
XRPUSD Daily MACD Bearish Divergence & Overbought | Source: TradingView<\/a><\/pre>\n
Monthly MACD Flips Green For First Time In Two Years, Bullish Crossover Calls For New Uptrend<\/h2>\n
XRPUSD Monthly MACD Bullish Crossover | Source: TradingView<\/a><\/pre>\n