Crypto Price Analysis: Ethereum and Ripple Bullish Long-Term

As humans, we have the tendency to only see what’s in front of us. Many of us get bogged down on day-to-day issues. So much so that we sometimes miss big opportunities. Most retail traders suffer from this difficulty. They tend to focus on their losses and the losses of the market, in general. They fail to see the rewards and opportunities available to those who look at the big picture.

Thus, in this article, we show you the big picture so you can be aware of the life-changing opportunities ahead of you. For all the negativity and bearish sentiment surrounding crypto, the long-term outlook remains solid, especially now that the entire market is very likely bottoming out. The market structures of Ethereum (ETH/USD) and Ripple (XRP/USD) support these arguments.  

Ethereum

An average retail investor might be bearish on Ethereum as it is currently down by over 90% from the bull market high of $1,424.30. From that point of view, no one in their right mind would touch an asset that can virtually wipe out your capital in a year.

However, a change in perspective shows that Ethereum has lost so much that people are scaling in. The volume from November 2018 to February 2019 is the highest volume cluster in Ethereum’s history on Bitfinex. In other words, people are frothing their mouths to get in because they likely see enormous potential.

Weekly chart of ETH/USD

Also, Ethereum is printing a bullish higher low setup. This tells us that even the smart money investors are front running each other. That’s because when Ethereum starts another bull run, a move here to the top end of the yearly range of $1,350 translates to gains of over 720%. More importantly, the next bull run will likely print new highs. Thus, $1,350 may be just a conservative target.  

ETH yearly range

For these reasons, we’re extremely excited about Ethereum’s long-term prospect. It is a market that shows tremendous upside potential.  

Ripple

Another market that looks bearish but actually shows long-term bullish potential is Ripple. Many people believe that Ripple has more downside potential because it is forming an ugly triangle on the weekly chart. From this perspective, bears appear to be winning the battle.

XRP possible triangle

While a triangle is a possibility, we are willing to bet that Ripple’s worst is behind us. That’s because the market is showing signs of accumulation.

During the second half of 2017, Ripple struggled against resistance of $0.24. When it finally breached this level, the market skyrocketed to $3.30 in January 2018. Today, Ripple has flipped resistance of $0.24 into support (SR flip). The smart money investors are quietly accumulating at current levels while many retail traders are afraid to enter the market.

XRP accumulation

If our bullish case is correct, those who buy now stand to grow their capital by over 960% in the next bull run should Ripple revisit highs of $3.30. Again, this is a conservative target because it is likely that Ripple could go above $3.30 in the next bull run.  

Bottom Line

Our tendency to focus on what’s in front of us in the present can distract us from the potential rewards of looking at the bigger picture. Ethereum and Ripple may look bearish short-term but a shift in perspective shows that both coins have tremendous growth potential. At the end of day, what you put your focus on often determines your choices.

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.