Merely a few hours after our warning, the price of XRPUSD fell more than 10% before recovering some of its losses. Interestingly, the price halted its decline slightly above the short-term support. Therefore, we speculate the price might end up trading within the wide range for an extended period; unless a breakout below the short-term support takes place and further confirms our bearish bias.
Regarding fundamentals, they remained unchanged, with central banks pursuing tighter monetary conditions all over the globe (resulting in stronger fiat money versus cryptocurrencies). With that in mind, we have very little optimism about the prospect of a primary trend reversal in stock and cryptocurrency markets. We believe the bear market is barely halfway through, and much more pain is ahead. Accordingly, we stick to our recently updated price targets at 0.30$ (short-term) and 0.28$ (medium-term).
Illustration 1.01
The image above shows the hourly chart of XRPUSD. The yellow arrow points to the highest spike in volume since the recent top. That confirms our bearish bias. Indeed, the volume spike came shortly after we shared news from @TradingView highlighting millions of XRP tokens being moved onto exchanges by whales, looking to sell at highs.
Technical analysis - daily time frame
SMA 20 and SMA 50 performed a bearish crossover. RSI, Stochastic, MACD, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
The picture above displays the daily chart of XRPUSD. The price stopped its decline just slightly above the short-term support; in its last rise, the price ceased its movement below the short-term resistance. A breakout below the short-term support will further bolster the bearish case. However, a failure of the price to break below this level might suggest that the price might end up trading within the wide range between short-term support and resistance for an extended period.
Technical analysis - weekly time frame
RSI, MACD, and Stochastic show signs of exhaustion. DM+ and DM- remain bullish. Overall, the weekly time frame is neutral/slightly 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.
Regarding fundamentals, they remained unchanged, with central banks pursuing tighter monetary conditions all over the globe (resulting in stronger fiat money versus cryptocurrencies). With that in mind, we have very little optimism about the prospect of a primary trend reversal in stock and cryptocurrency markets. We believe the bear market is barely halfway through, and much more pain is ahead. Accordingly, we stick to our recently updated price targets at 0.30$ (short-term) and 0.28$ (medium-term).
Illustration 1.01
Technical analysis - daily time frame
SMA 20 and SMA 50 performed a bearish crossover. RSI, Stochastic, MACD, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
Technical analysis - weekly time frame
RSI, MACD, and Stochastic show signs of exhaustion. DM+ and DM- remain bullish. Overall, the weekly time frame is neutral/slightly 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 active:
XRPUSD broke below 0.40$.
