Altcoins Coiling for Massive Rally: Ripple (XRP) & Cardano (ADA) Analysis
The slumbering giant of the altcoin market is starting to stir. Bitcoin is showing signs of preparing for a big move, and therefore the altcoins will probably not be lagging too far behind. $XRP and $ADA are in pole position.
Mother of rallies to come in altcoins
Source: TradingView
Total2 is the chart for the market capitalization of all the altcoins, excluding $BTC. The daily chart above reveals that the altcoins market cap has found strong support at the $1.25 trillion horizontal level. It bounced from there and is now above the major ascending trendline and is currently nestled up against the descending trendline (faint dotted line).
While it’s possible that the altcoins market cap doesn’t break out yet, higher lows have continued to be made since April. When Total2 comes back down again this just might be for the final time before a mother of rallies.
$XRP up 23% in less than a week
Source: TradingView
$XRP has been a high-flyer so far on Monday morning. Up more than 7% on the day, the price is also up nearly 23% since touching the bottom of its channel less than a week ago.
Judging from the Stochastic RSI indicators in this 12-hour time frame, a local top may be forming soon, if not now. While the high time frame indicators are signalling a very oversold condition, (and that’s what really matters), in the short time frame $XRP is overbought, and we’ll probably have to see perhaps a higher low before the price heads up in all seriousness to the top of the channel and a potential breakout.
$XRP getting ready for high time frame breakout
Source: TradingView
The 2-week chart says it all for $XRP. After the price erupted out of the triangle back in July and hit a new all-time high of $3.66, the price absolutely needed to enter a new distribution period, and it looks as though that period is coming to an end.
The price has followed a descending channel and probably tested the bottom in the last 2-week period. The Stochastic RSI at the bottom of the chart has the indicator lines perfectly placed for a cross back to the upside. Things are similar in the weekly time frame. This one is probably going to $4 - quite possibly by the end of this year.
$ADA bounces from bottom of descending triangle
Source: TradingView
$ADA looks to have made its own bottom. The price has just bounced from the bottom of a descending triangle and has also punctured through a small descending trendline. It might be expected that the price continues to go back up to the top of the triangle.
The RSI indicator, at the bottom of the chart, has just broken through its own downtrend line, adding validity to the breakout in the price action.
Explosive breakout coming for $ADA?
Source: TradingView
The weekly time frame for $ADA reveals how the descending triangle is actually part of a much bigger wedge pattern, and that this has been forming for more than 4 years. A breakout from this pattern is likely to be explosive.
Just like is the case for $XRP, the weekly Stochastic RSI indicators are practically on the floor, while in the 2-week Stochastic RSI the indicators are not far from the bottom. This is setting up for exactly that explosive move.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.