Advertisement

Advertisement

Ripple (XRP) Seeks Direction As Price Remains Below 50 Day Moving Average

Ripple (XRP) Seeks Direction As Price Remains Below 50 Day Moving Average

Ripple (XRP) has shown extreme weakness these past few months as the price has had a very hard time staying above the 50 day moving average. The daily chart for XRP/USD shows that the price of Ripple (XRP) fell below the large symmetrical triangle. However, it ended up climbing back above the trend line support turned resistance and is now once again eyeing a break out to the upside. RSI on the daily time frame shows that XRP/USD might be able to test the top of the symmetrical triangle but the stochastic indicator shows that it might not be easy for the price to break above that level. In fact, Ripple (XRP) seems to have lost all opportunities to break out. There is still a possibility that the 50 day MA and the 200 day MA could see a bullish crossover to form a golden cross if Ripple (XRP) breaks above this symmetrical triangle.


If Ripple (XRP) continues to trade like it has in the past few months, it is very unlikely that the price may end up forming a golden cross. In fact, the most likely scenario would be for the price to once again decline below this triangle, more aggressively and to see the 200 day MA falling below the 50 day MA to form a death cross. Ripple (XRP) like most other cryptocurrencies is on the verge of extreme sell-off against Bitcoin (BTC) as well as the US Dollar (USD) during the next downtrend. We have yet to see some major shifts in the cryptocurrency market. There are still a large number of useless cryptocurrencies around and they have to be wiped out before the next bull run. Even the level of optimism we see in the market right now is enough to deduce that we are not there yet. This does not feel like the end of the bear market, not when people are still this optimistic.

 


The daily chart for XRPUSDShorts shows that the number of margined shorts for Ripple (XRP) has seen a significant decline even though Ripple (XRP) has done anything but shown bullish momentum these past few months. Retail bears might be losing interest in shorting Ripple (XRP) but this is an opportunity for professional traders and often an indicator of what is to come. When the retail traders start giving up on shorting XRP/USD and the number of margined shorts declines this low, it is usually time for a trend reversal.

Ripple (XRP) has yet to see its price come down anywhere close to the levels it had been trading in before the December, 2017 bull run. Most cryptocurrencies have already seen those lows but Ripple (XRP) has yet to see price of $0.18 or lower. The price of Ripple (XRP) has traded independently of Bitcoin (BTC) at certain points during the bear market which has prevented it from seeing those lows. However, if and when BTC/USD takes another turn for the downside, Ripple (XRP) will be one of the cryptocurrencies to fall the hardest in order to retest those lows.

You can share this post!

Advertisement