[ad_1]
For those that have been following the price articles that have been put out in recent times, the recent downturn in price is something that was anticipated a few days ago:
https://www.tradingview.com/chart/XRPUSD/2nwG1KT3-XRP-Beginning-to-Look-Very-Bearish-in-the-Mid-Term/
Currently, the price of $XRP is down -10% for this period (on the daily), which is a pretty steep decline.
So, what’s going on? We’ll review below.
$XRP Ripple Price Analysis
For this price analysis, we’re going to look at the USD side of things on the trade.
Let’s start with the H2 (2 hour) chart:
In the picture above, we can see what appears to be a ‘traded range’ that has developed on the H2 chart resolution for XRP.
What does this mean?
In short, a traded range is a resistance and support point that the price trades back and forth between until it either breaks above or below the traded range.
Below is an example:
Source: https://www.investopedia.com/terms/t/tradingrange.asp
Thus, according to modern trading theory, we should be expecting the price of Ripple to make a quick stop at approximately 44 cents (not an exact, just an estimate).
However, the momentum for the price of $XRP makes it appear as though the price may decline even further than that.
RSI(14) Reading for $XRP Ripple
For the RSI here, we’re going to look at the daily chart resolution rather than ther H2, so that we can get a better idea of how the price may behave over the next few days:
In the picture above, we can see that the RSI(14) has corrected itself sharply from the overbought region that it was in previously.
However, this does not mean that there is any guarantee there will be a consolidation period lingering in the woods for $XRP at any point in the near future.
In fact, on the contrary, the RSI(14) appears to indicate that there could be a much more precipitous decline on the way as the acceleration of its decline shows heavy downward price movement, and price action is something that tends to stop gradually.
For instance, while Ripple was increasing in price, we could see that it was making major gains (below we switched to the H4 for the convenience of seeing this a bit easier):
From this, we can see a similar principle in the price going down as well:
If the candles are elongated and the momentum appears to be in ‘full swing’, then that is a terrible point to assume an immediate pivot unless there is some sort of astronomical news event that would cause such a thing (i.e., USA announces they are replacing the Swift network with Ripple’s token instead).
The picture above is self-explanatory due to the caption.
Now, let’s recap on that support point.
Support Points for $XRP Ripple
However, as stated above, we’re expecting an eventual break below this point. So, let’s see what the next likely support points will be.
The golden line in the picture above is the EMA-50 (Exponential Moving Average), which is lingering right at the support line that we originally drew for $XRP based on the prior price movement.
This should signal to us that this support point is likely a major one, thus representing a point of support that could slow the price down once it hits. There may even be a tiny bounce from that point.
However, traders should beware because such a point could be a mere alleviation of the price action downward by bears before they consolidate profits and place larger short bets on the currency once again.
Below the point of 43–45 cents, traders should anticipate the 35–37 cent range as the next likely point of support for the price.
Ripple’s overall trajectory looks bearish, that’s the only way to describe it.
Thus, we’re going to go ahead and look at solutions that allow us to short the price of Ripple.
Below is the R/R that we anticipate for Ripple. Trade completion is at 36 cents.
Disclaimer: Nothing in this article is financial advice and the author is not invested in either Ripple or any cryptocurrency/Ripple competitor.
[Whoa] Ripple’s Blockchain Ledger Sees 150 Million XRP Coins Move in New Mega-Transaction
Binance Ratings Calls Ripple (XRP Coin) the Best Performing Digital Asset This Month
[ad_2]
Source link
