Ripple: The Banker Coin Is Dead

Many people in the cryptocurrency community are extremely anti-establishment, and believe that many cryptocurrencies such as the privacy-focused ZCash (ZEC-USD), the contract-focused Ethereum (ETH-USD), and the “daddy of them all” Bitcoin (BTC-USD) will eventually make fiat currencies obsolete.

As we saw in the crypto bull market of 2017 however, many big banks such as Citi Bank (NYSE:C) and Goldman Sachs (NYSE:GS) have been doubling down on cryptocurrency by investing in a bank-backed coin known as Ripple (XRP-USD).

Ripple, or as its critics call it, the “banker coin,” has a history of causing controversy… and while this controversy may be legitimate or simply meaningless drama, the coin isn’t looking too bullish.

Descending Trendline
After Ripple topped out at nearly $3.30 on the first of January, we saw it lose over 80% of its value in just under a month. This begs the question, then – are we bound to see losses like this any time soon, or has the cryptocurrency shrugged off its bearish tendencies?
One bullish sign that Ripple has shown is its recent breakout of a descending trendline. On April 12th, roughly one month ago, the cryptocurrency broke out of a descending trendline that had kept it in a bear market for nearly four months. See the image below.
Many were convinced that Ripple was destined for a surge after this breakout, but despite this the banker-backed cryptocurrency doesn’t seem very bullish.
It’s encountered stark resistance at the $1.00 mark which it’s tried to break through several times, and while this may be indicative of an ascending triangle, preliminary analysis shows it to be bearish.

Stochastic RSI Analysis
While the resistance at $1.00 may appear bearish, the stochastic RSI analysis isn’t quite as gloomy. When looking at multiple time frames, it seems that Ripple may be due for at least a small rally.
Looking at the picture below, we see the Stochastic RSI looks fairly bullish. The Stochastic RSI, which measures the relative lows and highs of an asset’s price, portrays that we’re long overdue for a surge. As you can see, the lines are about to cross over as well, which is a bullish sign.
The weekly Stochastic RSI, however, tells a different story. Looking at the chart below, you can see that a decent surge has already happened on a longer time frame, and taking note of how the lines are on path to cross over, appears that we may be overdue for a sharp dip in prices.
So what’s one to make of this? Well, we will have to look at other indicators such as the MACD to get a more accurate prediction, but the technical analysis and Stochastic RSI aren’t looking too pretty.

MACD Analysis
The MACD, which measures the average momentum over a period of time, also tells a very bearish tale. Looking at the image below, we see that while Ripple did experience a slight increase in momentum, which caused the descending trendline breakout, it’s on path for another drop.
Looking at a longer time frame, the 1-week MACD tells us a similar story. It appears that this banker-backed coin may have been way overbought, and even more overhyped.
Again, looking at an even longer time frame, we see that there’s slight signs of a crossing over, but noting that the MACD hasn’t even gone into the negative ranges yet, this crossover, if it even happens in the first place, likely won’t be much to bat an eye at.

While mainstream media sources such as CNBC and Bloomberg (this link is pay walled) went full on gung ho in promoting Ripple, this “banker coin” as it’s been named doesn’t seem to have too bright of a future.
The chart analysis, as well as multiple indicators paint a very clear picture: While this cryptocurrency may be due for a small bump in price over the next few weeks, it certainly doesn’t seem to be going anywhere anytime soon.
This in conjunction with the recent lawsuit Ripple was hit with leads us to assume a not-so-bright future. While AMEX and other banking institutions have tried to make this cryptocurrency the official banker coin, it seems that most believe a “banker coin” defeats the whole point of cryptocurrencies.

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Author: Maxpositives
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