Is Ripple going to crash to $0? I know right away, that many people will immediately scoff at that question. However, as a technical analyst, I have to consider all possibilities.
Before we go any further with this hypothetical scenario, I want to get something out of the way. As investors, analysts, people trying to make a buck, we must never, ever, become so infatuated with our investments, that we think they can never fail. When your emotions control your decisions, your decisions naturally become irrational, and irrational decisions will destroy your investments.
Now, let's look at Ripple. As we've discussed, there is a big, huge, ominous head and shoulders pattern, staring us right in the face. So, what does that mean? Well, it means that there is a very high probability, based on the notoriety of this technical formation, that there will be a breakdown in the near future. It isn't a 100% certainty (because nothing is certain in the investment world) however, there is a high probability. So, we have deduced that a breakdown is likely to occur. But how do we determine how far it will go? Where will it stop? In order to determine the price target of a head and shoulders pattern, traders will often make measurements of the structure. I would like to draw your attention to the chart. At the base of the head and shoulders pattern, you can see the "neckline" (black trendline.) To measure a price target, for such a formation, we measure from the neckline, to the highest point of the head. We then copy that measurement, and paste it to the breakdown area. In this case, a breakdown from the neckline hasn't occurred yet, so I have placed the measurement in an arbitrary location, where the breakdown might occur.
So, what do we see? A price target of zero — that's what we see.
Now, am I saying that Ripple is going to collapse to zero tomorrow? No, absolutely not. Could it happen? Most certainly, unequivocally, yes. I'm just trying to illustrate this simple technical principle, that NOBODY is talking about right now. This stuff is common knowledge for analysts, but all I see are these fantasy charts that have arrows leaping off into the stratosphere. To be clear, I have seen many head and shoulders patterns that break down, but never reach the full breakdown distance of the height of the head. However, I have also seen a lot that have reached that distance. It's just something to think about.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, like, comment, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Before we go any further with this hypothetical scenario, I want to get something out of the way. As investors, analysts, people trying to make a buck, we must never, ever, become so infatuated with our investments, that we think they can never fail. When your emotions control your decisions, your decisions naturally become irrational, and irrational decisions will destroy your investments.
Now, let's look at Ripple. As we've discussed, there is a big, huge, ominous head and shoulders pattern, staring us right in the face. So, what does that mean? Well, it means that there is a very high probability, based on the notoriety of this technical formation, that there will be a breakdown in the near future. It isn't a 100% certainty (because nothing is certain in the investment world) however, there is a high probability. So, we have deduced that a breakdown is likely to occur. But how do we determine how far it will go? Where will it stop? In order to determine the price target of a head and shoulders pattern, traders will often make measurements of the structure. I would like to draw your attention to the chart. At the base of the head and shoulders pattern, you can see the "neckline" (black trendline.) To measure a price target, for such a formation, we measure from the neckline, to the highest point of the head. We then copy that measurement, and paste it to the breakdown area. In this case, a breakdown from the neckline hasn't occurred yet, so I have placed the measurement in an arbitrary location, where the breakdown might occur.
So, what do we see? A price target of zero — that's what we see.
Now, am I saying that Ripple is going to collapse to zero tomorrow? No, absolutely not. Could it happen? Most certainly, unequivocally, yes. I'm just trying to illustrate this simple technical principle, that NOBODY is talking about right now. This stuff is common knowledge for analysts, but all I see are these fantasy charts that have arrows leaping off into the stratosphere. To be clear, I have seen many head and shoulders patterns that break down, but never reach the full breakdown distance of the height of the head. However, I have also seen a lot that have reached that distance. It's just something to think about.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, like, comment, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Comment:
Hi everyone! I can see that this post has generated a variety of comments and responses, which I fully expected. =D I want you all to know that I appreciate both the love and the hate. If you doubt the legitimacy of this analysis, you can google "head and shoudlers price target." Once you get past all of the shampoo bottles, you'll discover that the method of price target estimation, used in this chart, is standard practice, and has been properly applied. I would like to emphasize the fact that I never said that XRP was going to zero. I just presented some legitimate evidence, to challenge your perspective. Thank you all for following! MPC loves you. =D
Comment:
shoulders*