MagicPoopCannon

Will Ripple Crash To ZERO? ... Really ... (XRP)

BITSTAMP:XRPUSD   Ripple / U.S. Dollar
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-
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*
Anything can happen but right now I'd give zero a 1-5% chance of happening. XRP can go to zero if it has no use or is banned or the company goes out of business, all of which currently looks very unlikely and the opposites are happening. The question is how much XRP will be used? You've told us how low you see it going. Now tell us how high you see it going.
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These are fun to read 8 months later =D
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XRP at 1.65...I gather that blows past your 1.61 target...or 0
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Goes to zero means literally no one is even selling. As long as there are holders, there are sellers and that means a non-zero price. XRP will go down hard against BTC this year, but BTC will also go up. Estimating the future XRP dollar value now is much more complicated than just looking at XRPUSD charts. Trading these alts against BTC when they peak and buying back when they floor again is the only sensible way to make money in these markets. Forget trading against USD here.
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I see your analysis on H&S many times. I note possible H&S even before that, but... It is very strange variant of H&S. In the way it is drawn - I do not recognize it as H&S.
I do not think it will make the targer - at around 0.04
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As someone below mentioned, there will always be value in something purchased. No one will ever sell something for nothing so no coin will ever be worth zero. It may simply be a number in a wallet at some point with no actual value but the price will never actually be zero.
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I never thought that I would read anything from a poo, but this makes sense at the moment.
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MagicPoopCannon ThomasNguyenAU
@ThomasNguyenAU, I'm glad that you're enjoying Thomas. Welcome aboard! =D
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More likely, prepare for a new ATH! Once this Btc will crash nonsense ends, alts and shitcoins will fly, some for the last time before a crash.
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