We've been pretty bearish on Ripple, and have written about this here and here. Last night, XRPUSD felt another strong wave of selling pressure that brought it down to our lower price targets.
As measured by the ATR, volatility had dropped off effectively to zero, suggesting that some kind of burst of momentum was due. We saw this last night as Ripple collapsed down to $0.25, before rebounding to $0.80. That's right, almost a four-fold price swing. Currently, volatility has subsided substantially, and we are clinging to footing around the lower anchor of our Fibonacci levels at $0.457. XRP seems to be just below this level at the moment, and it will provide significant resistance. Unless we see another buying frenzy, it is doubtful we will breach this level any time soon.
The bias is short for now, but no one can predict these drastic price swings with 100% accuracy. After such intense momentum and volatility, it is highly likely to see both subside, and this is what we are seeing now. Ripple is likely to range between $0.370 and $0.457. These are significant levels that will serve as the boundaries of a sideways channel. Watch for significant momentum at the boundaries of the channel to determine if there will be a breakout to the up or downside. Our inclination is to the downside, but trade cautiously. You don't want to be on the wrong side of a $0.60 rally.
As measured by the ATR, volatility had dropped off effectively to zero, suggesting that some kind of burst of momentum was due. We saw this last night as Ripple collapsed down to $0.25, before rebounding to $0.80. That's right, almost a four-fold price swing. Currently, volatility has subsided substantially, and we are clinging to footing around the lower anchor of our Fibonacci levels at $0.457. XRP seems to be just below this level at the moment, and it will provide significant resistance. Unless we see another buying frenzy, it is doubtful we will breach this level any time soon.
The bias is short for now, but no one can predict these drastic price swings with 100% accuracy. After such intense momentum and volatility, it is highly likely to see both subside, and this is what we are seeing now. Ripple is likely to range between $0.370 and $0.457. These are significant levels that will serve as the boundaries of a sideways channel. Watch for significant momentum at the boundaries of the channel to determine if there will be a breakout to the up or downside. Our inclination is to the downside, but trade cautiously. You don't want to be on the wrong side of a $0.60 rally.
