As much as I would love to buy XRP for profits, the pattern forming shows heavy risk to the downside from here. I believe that XRP is still in correction from Jan 2018 and will continue downwards towards the 5 cent range.
As we all know, the SEC investigation into XRP has tempered bullish sentiment in cryptocurrencies -- altcoins in particular. Since then, we saw a massive selloff of the currency and are now wondering -- where next? Despite this news, the chart shows us that XRP has been moving down since Jan 2018 and has not completed a full 3 wave A-B-C structure.
Wave A is a double zigzag from Jan 2018 to August 2018, completed and in a 1 : 0.618 ratio (use log ratios when using fib extensions)
We have just completed a wave B as a W-X-Y that started in August 2018 and ended this past November. If you measure out the waves, wave W and wave Y are of a 1 : 1.618 ratio. This points towards a finished WXY pattern that represents a full wave B in the ABC correction.
All this points towards more downside as a final wave C towards the 5 cent range. There will still be one more upswing before this completes as buyers step in to "buy the dip". Here is my rudimentary projection:
All eyes are on XRP now, as the future of cryptocurrencies may be affected. If Ripple comes out of this investigation victorious or come to an agreement and continue to operate, the future for crypto is bullish. If not, the effects may "ripple" towards the other cryptos in a negative way. Let's hope for the best.
As we all know, the SEC investigation into XRP has tempered bullish sentiment in cryptocurrencies -- altcoins in particular. Since then, we saw a massive selloff of the currency and are now wondering -- where next? Despite this news, the chart shows us that XRP has been moving down since Jan 2018 and has not completed a full 3 wave A-B-C structure.
Wave A is a double zigzag from Jan 2018 to August 2018, completed and in a 1 : 0.618 ratio (use log ratios when using fib extensions)
We have just completed a wave B as a W-X-Y that started in August 2018 and ended this past November. If you measure out the waves, wave W and wave Y are of a 1 : 1.618 ratio. This points towards a finished WXY pattern that represents a full wave B in the ABC correction.
All this points towards more downside as a final wave C towards the 5 cent range. There will still be one more upswing before this completes as buyers step in to "buy the dip". Here is my rudimentary projection:
All eyes are on XRP now, as the future of cryptocurrencies may be affected. If Ripple comes out of this investigation victorious or come to an agreement and continue to operate, the future for crypto is bullish. If not, the effects may "ripple" towards the other cryptos in a negative way. Let's hope for the best.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.