Granted, there was nearly a 3x difference in the amount of volume between these candles' volume ($6.5M vs $2.5M), the price fluctuation is an order of magnitude less volatile. What this suggests to me is that the market has determined this sell off was either premature or dramatically oversold.
Zooming out, it appears XRP has just been primed for a strong rally, back to around $1.25-$1.32 by Friday. I'm skeptical that we will break into/above the $1.38-$1.44 region on this leg up. It seems far more likely that we'll reject off the 10 year fib channel's .382 range. We will likely remain rangebound between $0.90-$0.98 & $1.32 going into the New Year.
There's a strong case to be made that we should see continuation to the upside, after the end of Fiscal year 2022, as wash traders will no longer have an incentive to suppress prices, to exploit tax loopholes regarding wash trading, which rules still do not apply to the crypto industry at large. This is both why I am skeptical that we will break bullish (above $1.38) before the EoY, but also why I am skeptical that crypto's current bull cycle will be seen as having ended in 2021.
Like many reputable investors/long term speculators I'm of the volition that the crypto bull cycle will see renewed fervor in Q1 2022, which will likely extend deep into Q3 before peak euphoria becomes blatantly visible. There's entirely too many variables which are providing tailwinds for the market to see continued growth, even in the face of a potential FED tightening. This is largely due to the inevitable flow of funds from (propped up) markets, into main street, which will drive wage growth, price inflation & pro-crypto/hard asset sentiment among the general population.
This is not a time to be short sighted and fearful, but a time to be forward thinking & pro-active in preserving what wealth we have from the ever-more-apparent inflationary pressures which are bursting from every orifice of economies around the world.
Zooming out, it appears XRP has just been primed for a strong rally, back to around $1.25-$1.32 by Friday. I'm skeptical that we will break into/above the $1.38-$1.44 region on this leg up. It seems far more likely that we'll reject off the 10 year fib channel's .382 range. We will likely remain rangebound between $0.90-$0.98 & $1.32 going into the New Year.
There's a strong case to be made that we should see continuation to the upside, after the end of Fiscal year 2022, as wash traders will no longer have an incentive to suppress prices, to exploit tax loopholes regarding wash trading, which rules still do not apply to the crypto industry at large. This is both why I am skeptical that we will break bullish (above $1.38) before the EoY, but also why I am skeptical that crypto's current bull cycle will be seen as having ended in 2021.
Like many reputable investors/long term speculators I'm of the volition that the crypto bull cycle will see renewed fervor in Q1 2022, which will likely extend deep into Q3 before peak euphoria becomes blatantly visible. There's entirely too many variables which are providing tailwinds for the market to see continued growth, even in the face of a potential FED tightening. This is largely due to the inevitable flow of funds from (propped up) markets, into main street, which will drive wage growth, price inflation & pro-crypto/hard asset sentiment among the general population.
This is not a time to be short sighted and fearful, but a time to be forward thinking & pro-active in preserving what wealth we have from the ever-more-apparent inflationary pressures which are bursting from every orifice of economies around the world.