At the beginning of the week, we have shared with you an analysis of the XRP. As you can see from the picture attached, bulls have been denied the break out of the pattern and therefore the price has been falling for the past two days. At the time of writing, price managed to stop on the 0.618 level of the fibonacci retracement, and in case circumstances favor break to the upside, these levels would be suitable to accumulate at.
Meanwhile, Bitcoin’s dominance have climbed over the weekend to the levels of current resistance on the low weekly volume as the CMF line stopped at the bottom of its long term patter, there are now two scenarios that we could see playing out. One possible scenarios it that the weekly CMF pattern will be broken as the weekly candle doesn’t penetrate the top of the price pattern. The other one is that the CMF line will bounce from these levels as the dominance breaks the top of the outlined dominance pattern. Since many altcoins are undervalued in relation to BTC, if the first scenraio takook place and the BTC’s dominance decreased, it’s very likely that altcoins will surge as Bitcoin will continue sideways. If the Bitcoin dominance breaks to the upside, it would imply that investors are abandoning altcoins, coming back to the more stable BTC.
To conclude, it’s impossible to fully predict in which direction will the price break. Though as BTC seems stronger than it has ever been through out the bear market, the odds favor final break out to be to the upside. Only time will tell, and therefore those who are fundamentally bullish should consider accumulating on these and possible future lower levels. Those of you who are fundamentally bearish should consider selling today as the price retraces up. We wish you a strong hands and good luck trading!