We continue to be bearish on XRPUSD and maintain our short-term price target (0.30$) and medium-term price target (0.28$). Our view is based on a combination of fundamental and technical factors. Overall, our assessment is very similar to our latest post on BTCUSD; we believe the cryptocurrency market has not bottomed out yet and has a long way to go before reversing to the upside.
Illustration 1.01 Illustration 1.01 displays the daily chart of XRPUSD. Interestingly, its structure resembles that of BTCUSD.
Technical analysis - daily time frame RSI, Stochastic, MACD, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02 Retracement toward the 50-day SMA and subsequent failure to break above it supports our early predictions about the rally being doomed to fail right in the beginning.
Technical analysis - weekly time frame RSI, MACD, and Stochastic are bearish. DM+ and DM- are bearish as well. Overall, the weekly time frame is 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.
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Volume continues to decline, hinting at less people interested in buying XRPUSD.
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We continue to notice bullish calls all over the place. Despite that and XRP stopping merely 0.01$ above our short-term price target (in the recent selloff and before reversing to the upside), we remain bearish and committed to our price targets. Ideally, we would not want to see a breakout above 0.40$ because that would bolster the bullish case.
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We want to point out the price retracing toward its 20-day SMA, which is still within a regular scope of a correction. As long as the price fails to hold above this level, we have no reason to backtrack on our price targets (+ despite the short-term one being missed by 0.01488$). That is because we believe the current move up is only a bear market rally, and XRP will set new lows over time. *If the price breaks above the 20-day SMA, it will likely provide short-term boost to XRP (postponing our price targets further in the future).
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*correction: "As long as the price fails to hold below this level, we have no reason to backtrack on our price targets"
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As the price broke above 0.40$, we are forced to abandon our price targets (at least until the price falls back below the immediate support/resistance). Here is the updated setup.
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Even after the breakout, the volume stays minuscule, which hints at likely reversal (unless there is a pick-up in volume soon).
Not so sure about your TA. Seems like it’s about to pop, no? Especially with the new SWIFT online on Monday, as well a R3 Corda settler using ripple for the new IBS / ECB system. What do you guys think?
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@Patl66, No. Why would everyone wait for Monday to buy?
Patl66
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@Tradersweekly, Fair enough. Thanks for your reply. Looking forward to better prices.
Tradersweekly
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@Patl66, It is noise like news, that is our point. Many people tend to get carried away with it. Thank you for the question.