Ripple - Dreams and hopes about to get crushed!
In our previous posts on the Ripple cryptocurrency, we pointed out the bullish breakout from the symmetrical triangle and signs of exhaustion accompanying this price action. In addition to that, we outlined a part of the legal case between the SEC and Ripple Labs, Inc., debunked a myth about the market-cap capabilities, and described an ongoing behavior in the Ripple community as merely a “buy the rumor, sell the fact” behavior.
Today, again, we would like to hint at several worrying developments about XRPUSD. First, volume continues to hover around monthly lows, reflecting little to no interest among new investors willing to propel the price higher. Furthermore, the risk appetite in the overall market continues to decline with the prospect of higher interest rates and progressing recession.
However, that does not seem to concern many market participants predicting the bottom and chasing the market with the vision of huge profits. Unfortunately, in our opinion, that is all it is - a vision of huge profits without regard for any macroeconomic factors. Indeed, we believe those on the buying spree over the past weeks will feed the ultimate selloff later as the general market progresses deeper into recession.
In accordance with that, we have no reason to change our bearish bias toward Ripple and stick to our price targets at 0.30 USD and 0.28 USD. Our other reasons for that are described below and in the attached articles.
Illustration 1.01
Illustration 1.01 shows the daily chart of XRPUSD. Yellow arrows hint at the latest technical developments. The price retracement toward the 20-day SMA catches our attention as it might potentially foreshadow a failure of the trend to continue. Therefore, we will pay close attention to the price action. If the price holds above the 20-day SMA, it will be bullish. However, if the price fails to hold above this level, it will be very bearish for XRPUSD. Therefore, to confirm our bearish thesis, we would like to see a pick-up in volume accompanying a drop in the price.
Technical analysis - daily time frame
RSI reversed. MACD turned bearish. The same applies to Stochastic. DM+ and DM- are bullish. Overall, the daily time frame reflects the loss of bullish momentum.
Technical analysis - weekly time frame
RSI turned neutral. MACD and Stochastic point to the upside. DM+ and DM- are bullish. Overall, the weekly time frame is slightly bullish/neutral.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Today, again, we would like to hint at several worrying developments about XRPUSD. First, volume continues to hover around monthly lows, reflecting little to no interest among new investors willing to propel the price higher. Furthermore, the risk appetite in the overall market continues to decline with the prospect of higher interest rates and progressing recession.
However, that does not seem to concern many market participants predicting the bottom and chasing the market with the vision of huge profits. Unfortunately, in our opinion, that is all it is - a vision of huge profits without regard for any macroeconomic factors. Indeed, we believe those on the buying spree over the past weeks will feed the ultimate selloff later as the general market progresses deeper into recession.
In accordance with that, we have no reason to change our bearish bias toward Ripple and stick to our price targets at 0.30 USD and 0.28 USD. Our other reasons for that are described below and in the attached articles.
Illustration 1.01
Illustration 1.01 shows the daily chart of XRPUSD. Yellow arrows hint at the latest technical developments. The price retracement toward the 20-day SMA catches our attention as it might potentially foreshadow a failure of the trend to continue. Therefore, we will pay close attention to the price action. If the price holds above the 20-day SMA, it will be bullish. However, if the price fails to hold above this level, it will be very bearish for XRPUSD. Therefore, to confirm our bearish thesis, we would like to see a pick-up in volume accompanying a drop in the price.
Technical analysis - daily time frame
RSI reversed. MACD turned bearish. The same applies to Stochastic. DM+ and DM- are bullish. Overall, the daily time frame reflects the loss of bullish momentum.
Technical analysis - weekly time frame
RSI turned neutral. MACD and Stochastic point to the upside. DM+ and DM- are bullish. Overall, the weekly time frame is slightly bullish/neutral.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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