In a previous post “Ripple, This Time Is Really Different” from September 2018 we highlighted that the XRP/USD breakout was uncommon from a technical view point and
suggested that:Bullish case will remain valid as long as the price does not close below the recent tweezers bottom at $0.246 (even if it spikes temporarily below it).
Following this signal the pair price shoot up to 0.8 before an almost eight-month long consolidation period ensued that tested multiple time the 0.27-0.28 level but holding firmly above it. During this time period the volatility contracted to its lowest level since the previous breakout from December 2017 almost one and half year ago.
XRP/USD Weekly Price Chart – 20 May 2019
For the first time since the all-time-high from Jan 2018 did the price of Ripple close outside of the volatility envelop accompanied by a major increase in weekly transaction volumes almost double those from early last year. This is an event not to ignore and a high probability signal that the second bull leg of the bull market genesis from the 0.24 price floor in Aug-Sep 2018 is now firmly in place. Scenario will remain valid as long as the price does not close below last week’s candle bottom at 0.29013 XRP/USD and every price weakness should be seen as an opportunity to accumulate Ripple positions.
It is expected for the newly developing bull trend to evolve in a less abrupt fashion and more sideways compared with the previous frantic spike from 0.20 to 3.5 in a short five weeks, which we had signaled for a 1,400% profit and it may be a good idea to sell strength and buy weakness during this bullish advance.