Bitcoin is booming: My Favorite Coin: Part #1 : XRP

With Bitcoin hovering around 19k, it's just a matter of time when it refreshes the all-time-high. And the altcoin will start to piggyback the Bitcoin's move for sure. If anyone has the experience of 2017, then he/she will certainly agree with me.

However, we must note that the crypto ecosystem has added many coins with specified use-cases since 2017, such as the DeFi boom, who are in the driving seat. So we may or may not have the same kind of rally in all the altcoins. But when the market starts FOMOing, the fundamentals may not weigh that much, at least during that FOMO period.

Bitcoin arguably is the king of crypto and the rest of the coins(altcoins) are queens. Fundamentally when BTC will refresh the all-time-high, it will certainly bring that much-needed euphoria for the crypto ecosystem and the altcoins will rally like anything.

I personally don't have any such portfolio, as I hardly make a saving. For the last 4 years, I have struggled hard for the basic income to survive ever since I lost my job. However, I never cease to learn about the coins, market dynamics, and technical analysis of trades. I keep learning them through a demo account.

So in the ongoing #bitcoinfomoing week, I will outline some of the potential coins that can make some good returns. I will put forth my own technical and fundamental analysis.

So today I have chosen XRP. Naysayers of XRP have long been described XRP as a centralized coin, but we should not forget that it is a top 3 coin in terms of market cap, with a circulating supply of 45 Billion XRP. For good faith, Ripple has locked 55 billion XRP in an escrow so as to allow more participants to join it.

^{Source: https://coinmarketcap.com/currencies/xrp/}

Most importantly if we look at the use-case XRP, it is evidently a powerful use-case. Any other currency including commodities can be transferred globally with XRP and quickly which is not possible in the traditional financial system.

Take the case of a wire transfer which is time-consuming and associated with high transaction fees. Ripple solves it by allowing the senders and receiver to use XRP to transfer any two commodities/currencies. Being a highly scalable network it happens as quickly as 3 secs and the transaction fee is as little as 0.00001 XRP. You can say that any other coin can also be sent like that, but Ripplenet excels by a strong partnership with leading financial institutions to make a strong use-case of XRP.

_Source

It has reasons to rally and the recent surge indicates that it has broken out of the range trading and now continues making higher highs.

If you look at the last 7 days' appreciation then XRP stands out with over 134% return and this rally does not look like a pump/dump phenomenon, it trades firm now on the higher range. The follow-through weekly bullish candle is another indication that the rally is likely to persist from here on. It is comfortably above all the moving averages like 55 EMA, 100 SMA, 200 SMA.

^{Source: https://coinmarketcap.com/}

But we keep on asking why the coin is rallying. In crypto, a rally generally happens either with strong fundamentals or with some positive news that can bring much stronger utility value to the coin or maybe anything related to an airdrop.

The following three reasons make the strong case of XRP bull-run.

• An airdrop is scheduled for 12th December, People are now buying XRP to receive an airdrop.
• Bitcoin is very close to refreshing its all-time-high(20K), so the traders/investors have started picking up the top 20 coins out of FOMO. They are anticipating that sooner BTC will reach an all-time high.
• Positive fundamental in recent time- Partnering with Bank of America & strategic move to capture CBDCs.

12th December Airdrop Event

There is a scheduled airdrop event on 12th December. The Flare Netwrok has already announced that it will airdrop "spark(FLR)" token to all the XRP holders with a ratio of 1:1. So it will be distributed to all the XRP holders on 12th dec. 45 Billion tokens are going to be airdropped.

^{Source: https://twitter.com/cryptocom/status/1331146787583713281}

So that's creating buying pressure, as a result, the XRP is trading bullish, and as we approach 12th Dec more people take the position in XRP.

BTC hovering around 19K creating Fomo for Altcoins

Whenever BTC makes an all-time-high, it becomes a new benchmark for the whole crypto industry and the market always celebrates such events, As a result, the crypto assets rally strongly.

^{BTC Weekly Chart}

We should not forget that BTC is a highly liquid crypto asset with a market cap of more than 357 Billion USD. To push such a coin higher and making an all-time high requires an enormous amount of money. But if that is happening around Bitcoin, that implies that capital flowing into this ecosystem. Indirectly it also finds a passage via BTC to other crypto projects. That is why the market always celebrates such events.

BTC now hovers around 19K and once it breaks the 20K mark, it is very likely to drag other altcoins along and the top 20 coins will be the first to join such a rally. XRP is already hinting at such a move.

Ripple- Partnering with Bank of America & strategic move to capture CBDCs.

The third one is quite strong. That does also align with the generic use-case of XRP. The Central Banks(of some of the countries) have been diligently doing research on CBDC. If any of the developed countries implement CBDC it will become a benchmark for the other countries to follow.

Ripple has been proactively strategizing its move to work in close co-ordination with CBDC, efforts are being made to use the XRP ledger for the same. They have already hired a central bank director to work in close coordination with the central banks across the globe for this objective.

Further, the Ripple network is constantly evolving with leading financial institutions. Recently they have announced Bank of America as the client of Ripplenet. The other partners include Standard Chartered, Nium, Santander, SCB, Moneynet, etc.

_{Source: https://ripple.com/ripplenet-committee}

This type of thing always brings strong fundamental value to a coin. And XRP is seemingly cheering this news, the current price action of XRP very much decode that sentiment.

Technical Picture

Those who are into the technical analysis of the chart, they are well versed with higher highs and higher lows to define a bullish trend. Further, the follow-through bullish candles validate a bullish trend. If a price trades above the 55 EMA, 100SMA, 200 SMA, etc then it makes the slope healthy.

^{XRP/USD H1 Chart}

I have checked the daily, weekly chart of XRP. In the daily chart, the formation is already bullish. In the weekly chart also it has formed a long bull candle(previous week) and this week candle is also trading bullish. So if it closes above the previous week's close, then it will validate that the follow-through candle is bullish, the TA traders will jump into the ship to further push the price.

^{XRP/USD Weekly Chart}

In all the higher time frames (Hourly, Daily, Monthly), XRP price has gone up parabolically widening the gap with all the three major moving averages(55EMA, 100SMA, 200 SMA).

So these indicators combining with fundamentals around Ripplenet & XRP, make a strong bull case at least in the short-medium term.

Conclusion

Whenever the broader market sentiment improves almost all coins rally, it is a different thing that some of the coins rally strongly, while the others with less intensity. But for naive traders, the comfortable pick from the list of altcoins is always top 20. They just blindly enter into it without going into its fundamentals, particularly at a time when the next altcoins bull season kicks off(or already started). FOMO.

So XRP being 3rd in the Market cap can be an easy pick for many. I wish I had money to ride this major bull run.

Thank you.

Cc:-
@steemitblog
@steemcurator01
@steemcurator02

Unless otherwise stated, all the images, infographics, charts, tables, etc(if any) are my original works. Logo of XRP is taken from the official site of Ripple.

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DISCLAIMER

^{This is not financial advice, nor a guarantee or promise in regards to any result that may be obtained from using the above content. So it should not be considered as financial and/or investment advice. No person should make any kind of financial decision without first consulting their financial adviser and/or conducting their research and due diligence.}