Hello Guys,
Welcome to my analysis on XRP. Due to a relative success of my BTC analysis, some of you were asking for update on XRP. Unfortunately, there are no good news for bulls. As we can see, the movement of XRP is highly correlated with movement of BTC. As a result of this fact, i see the possible scenarios how the price action may play out. It is also underlined by low volume of this asset, that for now it is just following the overall cryptocurrency market trend.
1. Scenario one assumes BTC will bounce from 7200 support level (In my opinion, there will be definitely at least small bounce at 7200 level, the question is whether we have alive cat or death cat. In case of the second, the scenario 2 will come into play) As we can see, we have experienced Elliot Wave failure (which is a short signal for some traders) resulting in further decline of the price. Taking into consideration the rigid regression trend, squeeze of MACD and range on RSI, we are likely to reach a confluence of the indicators. This will result in the price bouncing from 40-42 cents support level. It does not look like a solid support for me, but let's consider for a moment it is a previous ATH from Q2 2017.
2. Scenario two assumes that BTC will jump with dead cat bounce from 7200 support level and continue with further decline. In this case, we can expect further decline on XRP as well (unless the XRP starts it's own journey). To be honest, I don't think this scenario is very likely. The bulls will come into play sooner or later. 28-30 cents is just way too low, but technicals are technicals.
Please DYOR, i am not your financial advisor, nor anyones :)
Please let me know what you think.
Best Regards,
D.
Welcome to my analysis on XRP. Due to a relative success of my BTC analysis, some of you were asking for update on XRP. Unfortunately, there are no good news for bulls. As we can see, the movement of XRP is highly correlated with movement of BTC. As a result of this fact, i see the possible scenarios how the price action may play out. It is also underlined by low volume of this asset, that for now it is just following the overall cryptocurrency market trend.
1. Scenario one assumes BTC will bounce from 7200 support level (In my opinion, there will be definitely at least small bounce at 7200 level, the question is whether we have alive cat or death cat. In case of the second, the scenario 2 will come into play) As we can see, we have experienced Elliot Wave failure (which is a short signal for some traders) resulting in further decline of the price. Taking into consideration the rigid regression trend, squeeze of MACD and range on RSI, we are likely to reach a confluence of the indicators. This will result in the price bouncing from 40-42 cents support level. It does not look like a solid support for me, but let's consider for a moment it is a previous ATH from Q2 2017.
2. Scenario two assumes that BTC will jump with dead cat bounce from 7200 support level and continue with further decline. In this case, we can expect further decline on XRP as well (unless the XRP starts it's own journey). To be honest, I don't think this scenario is very likely. The bulls will come into play sooner or later. 28-30 cents is just way too low, but technicals are technicals.
Please DYOR, i am not your financial advisor, nor anyones :)
Please let me know what you think.
Best Regards,
D.