Why Waning XRP Momentum May Be The Calm Before The Storm Surge

XRP investors are eager to see their altcoin of choice get back a lot closer to all-time high valuations. The crypto market underperformer recently …

XRP investors are eager to see their altcoin of choice get back a lot closer to all-time high valuations. The crypto market underperformer recently regained its number three rank thanks to an over 45% one-week rally.

However, things have since cooled down. Why is momentum currently waning, and what does this mean for an extended recovery? The same indicator on lower timeframes points to a pause from bulls, but on high timeframes suggests this is the calm before the storm. What can altcoin investors expect?

XRP Rebound Takes Pause, But Are Bulls Preparing An Even Stronger Push?

A rebound from nearly three years of a bear market takes time to recover from. First, momentum from the downtrend needs to decline, while positive momentum from bulls begins to build. After a phase of equilibrium where supply and demand reach a stalemate when the odds tip once again in the favor of bulls, a new uptrend begins.

That is exactly what XRP investors have been hoping for, after watching the asset fall over 99% from its all-time high of over $3.50 token. At the low this past Black Thursday, Ripple traded at just ten cents briefly.

The epic fall set the bottom and from there the asset has recovered over 200%, potentially giving bulls confidence to turn things around for good.

xrp macd daily bear div

xrp macd daily bear div

XRPUSD Daily MACD Bearish Divergence & Overbought | Source: TradingView

But before that happens, the recent rally appears to be pausing or running out of momentum. According to the moving average convergence divergence indicator, a momentum measuring tool, the asset has reached overbought conditions. There’s also a bearish divergence on the MACD on daily frames.

Related Reading | Short-Term XRP Target At 40 Cents, What Ripple’s Long Road To Recovery Looks Like

These factors indicate that a temporary pullback is likely in the asset and a pause in price action possible. But it may simply be the calm before a major surge in XRP.

Monthly MACD Flips Green For First Time In Two Years, Bullish Crossover Calls For New Uptrend

A ripple-effect may have already begun the moment the monthly MACD turned bullish for the first time in over two years.

The same tool that is showing a pause in bullish momentum and overbought conditions on daily timeframes, on higher timeframes is signaling that a new uptrend is only just now starting.

xrp macd monthly

xrp macd monthly

XRPUSD Monthly MACD Bullish Crossover | Source: TradingView

The moment the trend turned bearish, a red, negative reading on the MACD’s histogram began and lasted all throughout the bear market. A green flip on monthly timeframes may suggest that a new bull market has started, but hasn’t fully ramped up yet.

When the two moving averages converge and cross, it can act as a powerful buy or sell signal. This bullish crossover is underway right now on XRPUSD monthly charts, coinciding with a 200% rally already, a green flip on the histogram, and an environment ripe for inflation.

Related Reading | Silver Fractal: Are Crypto Altcoins On the Cusp of an Explosive Surge?

In the past, XRP turning bullish took valuations from under a penny to over $3 in a year. Is the recent slowing momentum just the calm before Ripple’s major storm surge?

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Factors To Monitor: CME Group Inc. (CME) and UnitedHealth Group Incorporated (UNH)

The stock of CME Group Inc. (CME) decreased by -0.67% to finish the standard trading session at $164.88. During that period, a total of 2170006 …

The stock of CME Group Inc. (CME) decreased by -0.67% to finish the standard trading session at $164.88. During that period, a total of 2170006 shares were traded, and this stock’s average trading volume is currently 1.94M shares per day. Important things to pay attention to when considering a stock’s current and future price are the 52-week high and low price points. Shares of CME Group Inc. (CME) are currently -26.84% below their 52-week high mark and 25.10% higher than the 52-week low mark.

Capital Research & Management Co…. opened a new position with shares of CME Group Inc. (CME) during the lastest quarter, according to the public company’s latest Form 13F filing with the US Securities and Exchange Commission (SEC). This particular institutional investor became the owner of 34,927,278 shares of the Financial Data & Stock Exchanges provider’s common stock, which is currently worth approximately $5.68 billion. According to the latest SEC filing from Capital Research & Management Co…., the firm held approximately 9.74% of CME Group Inc.. On a separate note, The Vanguard Group, Inc. entered a new position in CME Group Inc. stock during the lastest quarter, holdings valued at $4.49 billion. Institutional investors and hedge funds hold 88.50% of this public company’s common stock.

Turning now to this publicly-traded company’s past performance, we will explore different moving trends for CME. This stock lost -3.19% during the last week and rose 1.77% over the last one-month period. Shares of this organization’s stock fall -9.14% throughout the last quarter. Within the last six months, the stock has decreased -22.80%, with a full-year loss of -15.40%. At the time of writing, this stock’s year-to-date (YTD) price performance is now negative at -17.86%.

Out of a total of 21 brokerages that are currently covering CME Group Inc. (CME) stock, the average recommendation is “Overweight” according to WSJ. 1 equities research analyst has rated the stock with a “Overweight” recommendation, 9 analysts have given this stock a “Buy” recommendation, 8 analysts have recommended that investors “Hold” this stock, and 3 analysts have given this stock a “Sell” rating and 0 suggested “Underweight”. Analysts’ average 1-year price target, among all the brokerages, is $180.83.

Shares of UnitedHealth Group Incorporated (UNH) managed to reach a high of $309.75 and dropped down to a low of $300.00, before this stock settled at $306.68 at the end of the latest trading session. This organization’s stock has been displaying bullish momentum. Its Average True Range, or ATR, has fallen consistently after each of the most recent 14 trading sessions. Stock traders typically look at the ATR when they want to focus on technical analysis. At the time of writing, the 14-day ATR for UnitedHealth Group Incorporated (UNH) is sitting at 7.27. UnitedHealth Group Incorporated currently has a 52-week low of $187.72 with a 52-week high of $315.84. This organization has a debt-to-equity ratio of 0.91. This public company has a market cap of $292.96 billion, a beta of 0.72, a price-to-earnings-growth ratio of 1.36, and price-to-earnings ratio of 17.25.

BURKE RICHARD T, the Director of UnitedHealth Group Incorporated (UNH), sold 10,000 shares of UnitedHealth Group Incorporated stock in an exchange that took place on Jul 22. The shares were sold at an average price of $303.50 each, amounting to a total Sale worth $3,035,017. As of the close of the Sale, the Director now directly holds 1,376,500 shares of the organization’s stock, which is now worth about $422145020.0. The deal was disclosed in a Securities & Exchange Commission legal filing, which can be publicly viewed on the SEC website.

UnitedHealth Group Incorporated (UNH) most recently publicly disclosed its earnings results on July 15, 2020. The organization posted $7.12 earnings per share (EPS) during the three-month period, which was $1.84 higher than the consensus estimate of $5.28. The company experienced a positive return on equity of 24.90% and a positive net margin of 5.60%. UnitedHealth Group Incorporated reported revenue of $247.81B during the last year. During the year-ago, the company reported $17.78 EPS. Analysts forecast that UnitedHealth Group Incorporated will report EPS of $3.11 for the current fiscal year.

Stock traders are taking a renewed look at shares of UnitedHealth Group Incorporated. This stock’s current 14-day RSI is standing at 56.82%, with a 9-day RSI of 59.14%, and a 20-day RSI of 55.58%. The RSI, which stands for Relative Strength Index, is a widely-used oscillating indicator trusted by investors and traders alike. The RSI works within a range-bound space with values on a scale from 0 to 100. When the RSI line rises, the shares may be showing strength. The contrary is the case when the RSI line starts to fall. When using the RSI indicator, different time periods may be looked at. When using a shorter time frame, the RSI might be more volatile. A lot of traders keep their focus between the 30 and 70 marks on the RSI scale. A shift higher than 70 is widely-considered to demonstrate that the stock has entered overbought territory. Meanwhile, a drop below 30 indicates that it may be in oversold territory. Traders often use these levels to predict stock price reversals.

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Is it a Good Time to Buy Bitcoin?

The Bitcoin break out is now confirmed by the strong bullish close above the range high area of 10,500. The trade idea that we shared at 9225 …

The question everyone is asking: now a good time to buy? And in terms of our long-only swing trade strategy, the answer is NO. Why not? It looks strong now? The risk of retrace after such a move is very high. This is NOT a location that offers attractive reward/risk, even though price appears to be pushing higher.

Now that we are out of our position, we WAIT for the next long setup and this begins with first anticipating an inflection point. At the moment, that point is the 10,400 area. This is the previous range resistance, which is now likely to act as a new support. IF price can retrace to this area, and produce a setup, we will be prompted to share a new swing trade idea. It may find support sooner, but only price action can provide the evidence and there is nothing at the moment except for vertical candles.

This is the herd mentality in action. No one was excited about Bitcoin at 9200, or 9K but now it looks strong again. Markets are irrational and driven by the forces of greed and fear which often lead to the wrong timing. The effective thing to do in such a situation is lock in profits while the buyers are plentiful, even if it is just a portion of the position. Effective behavior and following a set of rules are what produce results, NOT chasing a market after it has made a significant move. Want to learn more? Visit the link to my website which you can find on my profile page.

This article was written by Marc Principato CMT, Executive Director at Greenbridgeinvesting.com.

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History Suggests XRP Could Soon Rally Over 30%, But Macro Weakness Remains

XRP has incurred some notable momentum throughout the past 24 hours, but it has been struggling to surmount the crucial resistance that sits …

XRP has incurred some notable momentum throughout the past 24 hours, but it has been struggling to surmount the crucial resistance that sits between $0.24 and $0.25.

The cryptocurrency’s upswing seen today came about as a result of a bull pennant break. Still, the slowing momentum seen following this positive technical development does seem to spell some trouble for where it trends next.

Analysts are now widely noting that the cryptocurrency does appear to be at a make or break level.

One important factor to consider is that it was recently able to surmount its 200-day EMA. In the past, XRP has rallied an average of 33% once this crucial level is broken above.

That being said, the tempered momentum seen in the time since this level was been broken suggests that it may not provide the embattled token with the same type of sharp upwards movements seen in past months.

XRP Pushes Against Heavy Resistance Following Technical Breakout

At the time of writing, XRP is trading up just under 4% at its current price of $0.24. This marks a notable climb from daily lows of $0.21 that were set yesterday.

This latest push higher appears to have been driven by a recent bull break out of a rising wedge that had been forming.

One analyst had spoken about this breakout yesterday afternoon when it occurred, saying:

“XRP (USDT) accelerating. Bull break off this rising wedge.”

XRP

XRP

Image Courtesy of Big Cheds. Chart via TradingView.

Despite the positive nature of this breakout rally, it is essential to note that the cryptocurrency’s momentum began stalling once it reached the mid-$0.24 region.

This price action also comes as the embattled token trades against a backdrop of immense bullishness across the aggregated cryptocurrency market.

Both Bitcoin and the vast majority of altcoins are currently caught within strong uptrends, but it doesn’t appear that the tailwind created by these uptrends will be enough to lift XRP higher.

If History Rhymes, It Could Be Gearing Up for a 30%+ Surge

Despite its lackluster price action seen over the past couple of days and weeks, its tempered uptrend may start accelerating.

Another analyst recently explained that the token’s break above its 200-day EMA was a significant development that signals further upside is imminent.

Historically, breaks above this level lead its price to surge by 33%.

“XRP only really ramps up the pumps when it’s above the Daily 200EMA. Both of the last major moves really kickstarted once this was achieved. Past pumps average 33% so if we look at the same for this move we land right up against the hugely significant weekly resistance.”

Image Courtesy of Cold Blooded Shiller. Chart via TradingView.

How it trends in the coming days should offer insight into whether or not this is a realistic possibility.

Featured image from Unsplash. Charts from TradingView.

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Earnings Blowout Sends AMD Surging To Record Highs

In response, the equity is swimming in bull notes, including an upgrade out of … So far today, the chip stock has seen 705,000 call and 313,000 put …

Following a blowout second-quarter earnings and revenue beat, Advanced Micro Devices (AMD) hiked its full-year forecast, citing an increase in chip demand as the work-from-home trend flourishes around the world. In response, the equity is swimming in bull notes, including an upgrade out of Susquehanna to “positive” from “neutral.” Now, AMD is buzzing with options activity, hitting a record high of $77.19 earlier, and was last seen up 12.6% at $76.14.

Today’s surge has AMD gapping higher for the second time this month alone, and has the stock sporting a brag-worthy 124% year-over-year gain. Supporting the shares on their impressive journey higher is the 100-day moving average.

Daily stock chart of Advanced Micro Devices stock with 100-day moving average

Daily stock chart of AMD since January 2020

AMD Chart Daily

Looking toward the options pits, volume is soaring. So far today, the chip stock has seen 705,000 call and 313,000 put contracts traded. This volume runs at double the expected rate, and in the 99th percentile of its annual range. Most active looks to be the weekly 7/31 80- and 75-strike calls.

Longer term, the sentiment has been the same. This is per data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which shows Advanced Micro Devices stock with a 50-day call/put volume ratio of 3.63, ranking in the 99th annual percentile. In other terms, calls have been purchased over puts at a quicker-than-usual clip over the past 10 weeks.

Now looks like an attractive time to trade the semiconductor giant too. In fact, the stock’s Schaeffer’s Volatility Index (SVI) of 60% stands in just the 27th percentile of its annual range, implying that options players are pricing in relatively low volatility expectations at the moment.

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