XRP over the last month had some of the strongest week over week performance in the space. The third-ranked altcoin rallied by as much as 45% in one week, outperforming the rest of the entire crypto market.
The asset often referred to as Ripple beating all other altcoins is the perfect underdog story after spending two years as the worst-performing crypto asset bar none. However, according to a potential fractal matching the 2017 crypto bubble, XRP may be about to go on a shocking rally that outperforms Bitcoin by a wide margin.
Ripple’s Recent Recovery Takes Pause, But May Have More To Rally
Bitcoin is booming once again after breaking through resistance at $10,000 and reigniting FOMO across crypto.
After the critical level was taken, the rest of the market followed with major altcoins like Ethereum, XRP, and Chainlink beating out Bitcoin’s returns substantially
Ethereum started the altcoin run, which later helped Chainlink set yet another new price record. XRP in the week following had an over 45% climb in just one week alone, taking the total recovery from the Black Thursday bottom to the current top to over 200%.
Aside from that one week, Ethereum and Chainlink ROI has been much higher. However, a fractal in Ripple could have the asset playing catch up, or potentially outperforming the market again.
XRPBTC 2020 Fractal | Source: TradingView
XRP Fractal Forewarns of Repeat Blast Off Against Bitcoin
A fractal discovered may be a forewarning of an incredible explosion in XRP against Bitcoin.
The fractal, playing out on the XRPBTC trading pair, very closely resembles the price action from the previous bottom in 2017, ahead of Ripple’s 2300% surge against the number one cryptocurrency.
XRPBTC 2017 Fractal | Source: TradingView
This rally eventually took XRP all the way to 24,000 satoshis, and an all-time high price in USD of $3.84 per token.
Related Reading | Why XRP’s Waning Momentum May Be The Calm Before The Storm Surge
Price action is taking place slightly higher than last time around and Bitcoin is trading at a different price in USD. Due to these variations and factors, this fractal may yield different results during this new cycle.
XRPBTC 2017 and 2020 Fractal Compared | Source: TradingView
If it matches, it could take XRPBTC to a new all-time high of 28000 satoshis. What that price ends up being in USD depends on what price Bitcoin is trading at at the time.
For now, visually, the similarities are enough to call for crypto holders to pay closer attention to the altcoin. After such an extended phase of underperformance again the rest of the market, sudden over performance leading to a long term recovery is possible.
A short-term recovery is already underway, and if Ripple follows this same fractal, things could get explosive in the weeks ahead.
‘Bulls have won’ — Bitcoin whale clusters suggest BTC trend reversal
Bitcoin (BTC) whale clusters indicate that the price could be in a short-term trend reversal after BTC’s recovery beyond $10,700. In the past two days, BTC price rose by nearly 6% from $10,135 to $10,755 across major exchanges.
Whale clusters form when large investors accumulate Bitcoin and do not spend or move their holdings for significant periods of time. This typically indicates that whales expect BTC price to increase in the near term.
The hourly map of Bitcoin whale clusters. Source: Whalemap
Whalemap, an on-chain analysis firm that tracks whale activity, identified $10,407, $10,570, and $10,667 as whale clusters. In the short term, the three levels are likely to serve as potential support areas if BTC remains above $10,700.
Bitcoin market sentiment is turning optimistic
According to the analysts at Whalemap, Bitcoin can remain in a bullish trend as long as it defends $10,407.
The analysts emphasized that the trend suggests “bulls have won,” as the market sentiment improves from the recent upsurge. They explained:
“Feels like bulls have won. Many supports below at $10,407 and $10,570 and volume profile support at $10,500. Should not be going below $10,407 to stay bullish.”
An interesting irregularity in the recent Bitcoin rally is that it has decoupled from gold, as Cointelegraph reported. While gold dropped slightly by 0.32% in the last 24 hours, BTC rallied above $10,700.
Willy Woo, an on-chain analyst, said decoupling indicates that the momentum of Bitcoin is strengthening. He said:
“Bitcoin will decouple from traditional markets soon, but driven by its internal adoption s-curve (think startup style growth) rather than changes in perceptions as a hedging instrument by traditional investors.”
Atop the various technical factors buoying the uptrend of Bitcoin, the current fundamentals project a positive near-term outlook.
Earlier this week, data from Glassnode showed that the number of small Bitcoin addresses abruptly plunged in September. Despite this, the analysts at Glassnode noted that the data is not concerning and does not impact network fundamentals. They explained:
“The recent drop in #Bitcoin addresses holding ≥ 1 $BTC is of no concern and has no relevance regarding network fundamentals. This was merely an exchange doing inhouse cleaning, and merging a bulk of small UTXOs in separate addresses into a single one.”
What do traders expect next?
Cryptocurrency trader Edward Morra believes that the market has to move above $10,830 to confirm a bullish continuation.
If BTC rejects $10,830 and returns back below $10,500, the $9,800 to $10,830 range could cause BTC to stagnate over a prolonged period. Morra said:
“Below daily resistance, above daily support = Ranging market. Price currently at a bearish throwback at $10,830. If we move above, expect a re-test of daily resistance at $11,200. Not interested in trading chop range – Wait for expansion. Support = $9,800 – $10,100.”
Dave Portnoy Says Bitcoin is a Big Ponzi Scheme But He’ll Be Back
Just months after making a grand entrance in the cryptocurrency space, the Barstool Sports Founder Dave Portnoy reaffirmed that he’s out of the field. In a recent podcast with Anthony “Pomp” Pompliano, the controversial day trader justified his exit by claiming that Bitcoin is a giant Ponzi scheme.
Portnoy’s Controversial Bitcoin History
Portnoy has become one of the most influential and controversial faces of legacy market day trading. Earlier this year, he declared that he’s “coming to Bitcoin,” which attracted lots of attention. Even the Winklevoss twins offered their help to educate him on Bitcoin.
However, his controversy quickly followed him in the vigilant cryptocurrency field, where the community rapidly spotted his pump and dump techniques. After buying several altcoins and claiming a loss of $25,000, Portnoy said that he’s out.
In Pomp’s recent podcast, he reaffirmed that he doesn’t own any digital assets as of now. He went even further by asserting that Bitcoin is “in my mind one big Ponzi scheme.” He argued that “you get in, and you just have to not be the one left holding the bag.”
Interestingly, though, his 2020 purchase of Bitcoin wasn’t the first. He admitted that he bought about $50,000 worth of BTC during the parabolic price increase in 2017 at about $15,000. When asked if he still holds the coins, Portnoy said that he lost the hardware wallet.
Lack Of Accountability Is A Problem, But I’ll Be Back: Portnoy
One of the most notable features regarding Bitcoin has been the anonymity of the creator – Satoshi Nakamoto. Although the pseudonym is well-known and disputed, and some people claim to be Nakamoto, the true identity remains a mystery to this day.
Portnoy believes that this is a problem. He argued that if he ends up losing money or being scammed, he prefers to know who’s the person behind the entire operation. With Bitcoin, though, this “lack of accountability” raises concerns that he’s not comfortable with. Nevertheless, he noted that he’s planning to get back into BTC:
“I’ll get back. I’ve been saying that I’ll be back into Bitcoin. I don’t know when, but I’ll be back.”
He argued that the community and mostly the memes attracted him the most in the first place, and it’s what he misses the most.
China’s Blockchain-Based Service Network (BSN) Integrates Tezos
- The popular blockchain company Tezos has become the last integrated network into China’s ambitious Blockchain-based Services Network (BSN).
- Developers can employ the Tezos protocol through BSN’s global public city nodes and portals for a “simplified development and deployment experience.”
- All three global public city nodes, namely Hong Kong, California, and Paris, have integrated with the Tezos Blockchain in both mainnet and testnet.
- Developers wanting to utilize the Tezos blockchain need to set up an account on BSN’s website and head towards the “permissionless services” section.
- Upon choosing the preferred public city node, developers need to “create a new project” and “choose the chain” (mainnet or testnet).
- After seeing the new project’s creation based on the Tezos blockchain, the next step is to insert Project ID, Project Key, and Access Address from the Project List.
“All APIs provided by Tezos can be accessed in similar ways, and the original data format will be returned.”
- China’s BSN was released earlier this year after some delays prompted by the COVID-19 pandemic. It enables developers to build applications, smart cities, and even digital economies on top of it without participants having to design a new network from scratch.
- Prior to Tezos, BSN integrated other popular blockchain companies starting with Chainlink’s oracle.
- BSN also integrated the Chinese-based platform NEO to accelerate the adoption of the blockchain technology in the country.
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