Ripple (XRP) and Cardano (ADA): Is It Time to Build Positions?

Both Ripple (XRP) and Cardano (ADA) are at, or breaking through trendlines. If you are bullish for the rest of this year, building positions in both of these altcoins potentially needs to be done sooner rather than later

$XRP breaks through downtrend

Source: TradingView

The Friday 10 October crash was almost certainly not expected by any XRP investors, especially given that the $2.72 horizontal support level had been holding so well up to that point. For those with particularly agile fingers and who held plenty of conviction and resolve, buying near the bottom of the candle wick down to $1.60 would have been a great buy, given the alacrity with which the price then shot back up.

As things stand on Monday, the downtrend has been broken, the horizontal support has been confirmed, and the $XRP price is rising nicely. Buying the $2.35 support level if and when the price comes back to it could be a good bet.

$XRP bulls need to push price back above 50-week SMA

Source: TradingView

The weekly view for $XRP shows that the price has fallen below the 50-week simple moving average. Given that the price has traded above this average throughout its big rally this year, it will be important for the bulls to get back above.

The weekly Stochastic RSI indicators are just about at the bottom, so when they turn back up, this could signal the next price rally for $XRP.

Will $ADA price be rejected from a descending trendline

Source: TradingView

The 8-hour chart for $ADA shows that the price is right up against a trendline. This will need to be broken if the price is to continue trading up. That said, the Stochastic RSI indicators are almost at the top. If they start to turn back down, the price is likely to be rejected. It may be that a better buy could be at a lower point between here and the horizontal support level. Of course the safest buy would be at the breakout, and then the confirmation of that breakout of the trendline.

$ADA bulls can still breakout of huge multi-year downtrend

Source: TradingView

Looking at the weekly chart, if Bitcoin is going to go to $200,000, the chances of $ADA breaking its huge descending trendline would be good. Buying the support at $0.50 certainly looks to be the way to go.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.