Ripple has officially taken over Ethereum to become the world’s second-largest digital currency. Its price action on the charts is sending out mixed signals though.
While the cryptocurrency market as a whole is losing its market cap value, Ripple’s XRP got the opportunity to take over Ethereum as Ether’s coin market cap dropped to around $12 billion. Ripple’s market cap is sitting at $15 billion during Monday’s Asian trading session.
It’s worth noting that over the weekend, the majority of top cryptocurrencies saw gains as the market attempted to recover from its bearish hangover. Ripple saw almost a 6% recovery while Bitcoin surged 4.83%.
TECHNICAL ANALYSIS
Looking at the price action on the charts though, we have a bit of a mixed signal. XRP/USD appears to be in the process of forming a Double Top chart pattern and it is right now testing the pattern’s neckline, which falls on a key pivot level at 38 cents. A confirmation of a break below this level could increase the chances of further losses in the crypto/fiat pair.
Other indicators such as the Ichimoku Kinko Hyo are also pointing to further declines, as the future Ichimoku cloud. appears to be bearish. If these indications are confirmed, we could see XRP/USD to drop back to the levels from back in August at around 26 cents, which is where Ripple’s price was at before its sudden surge end of September.
Obviously, keep in mind that trading cryptocurrencies involve a ton of risk and you shouldn’t invest the money that you can’t afford to lose. But for Ripple fans, these drops could create a perfect buying opportunity.
*This article was originally published here