In our previous post, we briefly discussed the relationship between the XRP’s price and market cap. Furthermore, we compared their various valuations to the equity market capitalization encompassing 59 400 companies listed on the World of Exchanges. Then, we said that we would like to see the price fail to break above the 50-day SMA in order to support our bearish thesis (while allowing for the temporary bounce above it, which would not present any threat to the primary downtrend).
Subsequently, the price failed to break above the 50-day SMA and dropped from 0.365$ to below 0.34$. Currently, XRPUSD trades near the 0.338$ price tag. We continue to be bearish on the asset and maintain our price targets of 0.30$ and 0.28$. To further support our thesis, we would like to see the price break below its recent low (19th December 2022) near the 0.332$ price tag; meanwhile, we do not want to see a significant drop in volume. If the breakout is successful, we will pay close attention to 0.32$ and then 0.314$, which will act as a major support level since it is the lowest value following the XRP’s drop from 0.558$.
*Check the attached articles to see the most important milestones on our XRP 2022 predictions roadmap."
Illustration 1.01
Illustration 1.01 shows the daily chart of XRPUSD. We previously stated that the retracement toward the 20-day SMA and 50-day SMA is a natural occurrence and often coincides with corrections of the primary trend. The yellow arrow indicates the price’s failure to break above the 50-day SMA, which is bearish.
Technical analysis
Daily time frame = Bearish
Weekly time frame = Bearish
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.
Subsequently, the price failed to break above the 50-day SMA and dropped from 0.365$ to below 0.34$. Currently, XRPUSD trades near the 0.338$ price tag. We continue to be bearish on the asset and maintain our price targets of 0.30$ and 0.28$. To further support our thesis, we would like to see the price break below its recent low (19th December 2022) near the 0.332$ price tag; meanwhile, we do not want to see a significant drop in volume. If the breakout is successful, we will pay close attention to 0.32$ and then 0.314$, which will act as a major support level since it is the lowest value following the XRP’s drop from 0.558$.
*Check the attached articles to see the most important milestones on our XRP 2022 predictions roadmap."
Illustration 1.01
Technical analysis
Daily time frame = Bearish
Weekly time frame = Bearish
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.
Trade closed: target reached:
Our price target of 0.30$ was reached overnight.
