The outlook for alternative cryptocurrencies appears grim relative to bitcoin as a renewed trade war potentially breaking out between the U.S. and its
Alternative cryptocurrencies are facing a bleak outlook as a potential trade war between the U.S. and its major trading partners could destabilize the global economy. However, some coins are showing bullish signs.
For example, the XRP/BTC ratio is hinting at a move above the upper Bollinger band on the monthly chart for the first time since 2017, indicating a strong XRP bull run.
Bollinger bands are volatility bands placed two standard deviations above and below the 20-period (day/week/month) simple moving average of an asset's price. A break above the upper band indicates a bullish imbalance in the market, and prices usually continue to rise for several days in a pattern known as high momentum.
Traders who follow price patterns typically enter long positions after prices cross the upper band, indicating a bullish market imbalance. Breakouts are usually stronger after longer periods of consolidation between bands.
After the Bollinger band breakout in April 2017, the XRP/BTC ratio surged by almost 200%, marking a bullish resolution to the prolonged period of low-volatility trading.
It remains to be seen whether history will repeat itself.
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