Apparently these bears aren't paying attention to XRP's weekly or monthly RSI. This is the first time in XRP's nearly 9 year lifespan that it's weekly RSI has fallen to 30, and as any trader worth their salt knows, an RSI of 30 or lower is premium buying signal. Which means XRP is flashing the biggest buy signal in it's entire history. This is the first time the asset has truly been under valued. This buying opportunity is further supported by the fact that it's monthly RSI only fell lower from the 2020 lockdown announcement, which gave investors the opportunity for a 7x return (in Dec 2020) and a 20x return one year when XRP peaked just shy of $2 in May 2021.
When you take this signal into context with the fact that the FED officials have started voicing concern for maintaining their aggressive interest rate hikes, there's a lot of talk among trad-fi of gold and other commodities rallying. As history shows, crypto correlates highly to precious metals and other commodities, thus if Gold rallies, so too will BTC, XRP and the rest of the crypto industry. Even if the FED intends to increase interest rates in mid June, the dovish bluffing may at least trigger a strong relief rally, after the cataclysmic collapse we've experienced this year across virtually all markets.
While this may not signal an end for the bear market, a strong rally (even on false hope) could confirm a technical bottom for XRP (and other assets) which have already experienced overly aggressive pull backs compared to the broader market. So I'm not calling for XRP to return to $2 any time soon, but I could see the June rally take us back to the $0.70 range or even back to ($1.20 if the FED delays it's rate hike at it's June meeting). Where the market tops in June will determine our trade range through Q3. XRP's technical structure suggests we will bounce between $1 and $0.56 (see my Wyckoff post from April).
Ultimately this is just my current view on the market. I am not a financial advisor. Take my views with a grain of salt and apply your own perspective to what I'm seeing before making any investment decisions. While my track record has been exceptionally strong since early 2021, my record is far from flawless.
May the trend ever be in our favor!
When you take this signal into context with the fact that the FED officials have started voicing concern for maintaining their aggressive interest rate hikes, there's a lot of talk among trad-fi of gold and other commodities rallying. As history shows, crypto correlates highly to precious metals and other commodities, thus if Gold rallies, so too will BTC, XRP and the rest of the crypto industry. Even if the FED intends to increase interest rates in mid June, the dovish bluffing may at least trigger a strong relief rally, after the cataclysmic collapse we've experienced this year across virtually all markets.
While this may not signal an end for the bear market, a strong rally (even on false hope) could confirm a technical bottom for XRP (and other assets) which have already experienced overly aggressive pull backs compared to the broader market. So I'm not calling for XRP to return to $2 any time soon, but I could see the June rally take us back to the $0.70 range or even back to ($1.20 if the FED delays it's rate hike at it's June meeting). Where the market tops in June will determine our trade range through Q3. XRP's technical structure suggests we will bounce between $1 and $0.56 (see my Wyckoff post from April).
Ultimately this is just my current view on the market. I am not a financial advisor. Take my views with a grain of salt and apply your own perspective to what I'm seeing before making any investment decisions. While my track record has been exceptionally strong since early 2021, my record is far from flawless.
May the trend ever be in our favor!