Ripple - Major update
On 8th September 2022, when the XRPUSD was trending sideways, we introduced a setup with two alternative scenarios. Since then, the price broke to the upside from a trading range and rose by more than 40%. Meanwhile, right at the beginning of the rally, we stated that it was predestined to fail over time and that no reversal of the primary trend was taking place.
We repeated this same statement several times over the past month and a half while we continued to outline multiple bearish developments on the chart of XRPUSD. Furthermore, we kept our medium-term price target at 0.30 USD and long-term one at 0.28 USD. We reasoned that the FED's pursuit of tighter economic conditions would let the reality sink in over time.
Now, it is finally time for us to update our price targets on the timeline. In accordance with that, we would like to set a medium-term price target to a short-term price target. Additionally, we would like to change our long-term price target to a medium-term price target.
Illustration 1.01
Illustration 1.01 shows several technical developments on the daily chart of XRPUSD. The declining volume supports our bearish thesis, and the same applies to today's pick-up in volume. Furthermore, we expect the crossover between the 20-day SMA and 50-day SMA to occur, further confirming our thesis.
Technical analysis - daily time frame
RSI and Stochastic are bearish. MACD is due to break below 0 points which will be bearish for the short term if it succeeds. DM+ and DM- are bearish. Overall, the daily time frame is bearish.
Illustration 1.02
We will closely watch support levels at 0.44312 USD and 0.42542 USD. A breakout below each of these levels will confirm our bearish thesis for the short term. Contrarily, a breakout above the short-term resistance will be bullish.
Technical analysis - weekly time frame
RSI is slightly bearish. Stochastic also turned bearish. MACD shows signs of exhaustion. DM+ and DM- are bullish. Overall, the weekly time frame is 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.
We repeated this same statement several times over the past month and a half while we continued to outline multiple bearish developments on the chart of XRPUSD. Furthermore, we kept our medium-term price target at 0.30 USD and long-term one at 0.28 USD. We reasoned that the FED's pursuit of tighter economic conditions would let the reality sink in over time.
Now, it is finally time for us to update our price targets on the timeline. In accordance with that, we would like to set a medium-term price target to a short-term price target. Additionally, we would like to change our long-term price target to a medium-term price target.
Illustration 1.01
Illustration 1.01 shows several technical developments on the daily chart of XRPUSD. The declining volume supports our bearish thesis, and the same applies to today's pick-up in volume. Furthermore, we expect the crossover between the 20-day SMA and 50-day SMA to occur, further confirming our thesis.
Technical analysis - daily time frame
RSI and Stochastic are bearish. MACD is due to break below 0 points which will be bearish for the short term if it succeeds. DM+ and DM- are bearish. Overall, the daily time frame is bearish.
Illustration 1.02
We will closely watch support levels at 0.44312 USD and 0.42542 USD. A breakout below each of these levels will confirm our bearish thesis for the short term. Contrarily, a breakout above the short-term resistance will be bullish.
Technical analysis - weekly time frame
RSI is slightly bearish. Stochastic also turned bearish. MACD shows signs of exhaustion. DM+ and DM- are bullish. Overall, the weekly time frame is 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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