Crypto Update: Ripple and Dash Are Showing Bullish Continuation
Many cryptos started this week in the red as heavy profit taking commenced. For those who bought the hype amidst the breakout rally, the price action would have been catastrophic. A lot of altcoin pairs have dropped more than 20% from the top of the rally.
Fortunately in trading, you only lose money once you hit the sell button. Your paper losses right now might mean that you did not enter at an optimal price. If you manage to weather this storm, chances are you’ll recoup your losses and grow your investments. That’s because many altcoin pairs are bullish. This week’s correction is necessary to keep markets healthy in the long-term.
In this article, we reveal how altcoin leaders such as Ripple (XRP/USD) and Dash (DASH/USD) are showing bullish continuation.
Recently, there’s been a lot of noise about Ripple. News about the release of a commercial version of its payment platform xRapid have given investors something to be excited about. In addition, more and more financial institutions are adopting the cryptocurrency. These developments have helped push Ripple to as high as $0.80 on September 21, 2018.
Unfortunately for those who bought around that price level, Ripple pulled back due to extreme overbought conditions. The market is currently trading at around $0.54. At this price, Ripple has lost over 30% of its value from the September 21 high. It looks like there’s still more downside potential.
Daily chart of XRP/USD
If you’re a long-term investor, however, there’s no reason to sweat the recent dip. Ripple has gone up so much that it is bound to significantly correct. More importantly, the uptrend is still intact. The bullish pennant on the daily chart confirms this view. The pattern shows that the market is consolidating and is preparing for the next rally.
Dash reversed its trend on August 28, 2018 when it breached resistance of $185. The price action enabled the market to break out from the large falling wedge on the daily chart. The bullish turn of events attracted breakout players who helped Dash rally to as high as $224.83 on September 1.
Almost a month later, the market is hovering just above the breakout. This might be a cause for concern, especially to traders who bought above $200. To them, the market appears to be in danger of invalidating the breakout.
A closer look at the market, however, shows that Dash is in pretty good shape.
Daily chart of DASH/USD
After the breakout, Dash appears to be trading inside an ascending channel. This confirms our view that the market is in an uptrend.
While Dash is yet to generate a higher high, it appears to be in the process of carving a higher low above $180. Once this consolidation is over, the market will likely resume its uptrend and post its first higher high for 2018.
Many cryptos started slow this week but long-term investors shouldn’t be concerned by this temporary setback. A lot of altcoin pairs remain bullish. Take for example, Ripple and Dash. Both markets have significantly pulled back but they are forming continuation patterns indicating that the uptrend is still intact.