DISCLAIMER: I am not a financial advisor. All contents on this blog are solely my own personal views and for Cryptocurrency Trading education/entertainment purposes only. Cryptocurrency Trading is very risky. Losses can exceed deposits. Enter with discretion.
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Ripple Swell events in the past usually drove XRPUSD prices higher but this year’s doing the opposite. Overall, the outcome of Ripple Swell 2020 is promising with CEO Garlinghouse pointing all he can the amassed utility for XRP and ODL (on-demand-liquidity) have to offer especially for cross border settlements.
First of all, congratulations to all who shorted the XRP! I hope you have enjoyed your profits. :-(
I know the fundamentals on XRP right now are way too strong but how come we are seeing a 2-day bearish momentum for XRPUSD price action? We all know as well that the US presidential election has still some weeks left and stimulus is on hold per Trump’s executive orders.
Are we seeing comeback for the US dollar? I have a feeling that XRP buyers are exhausted a lot. We will have a look at the charts to see what really is happening. The charts always give answers on how the markets are feeling at the moment. Technical indicators most of the time would not dare to lie on how the markets are trending as well as the traders’ sentiments over recent fundamental news. In the case of hyper prices volatility cases like a sudden panic selling by traders because of recent lockdowns by on-going COVID19 havocs like we have seen last March 2020, charts can be wrong too. I know it sounds peculiar but at least we have charts to base what is going on.
This article that I am writing now serves as a quick general technical analysis for the XRPUSD price action especially to all XRP traders/hodlers like me.
Before I proceed, please remember to read my disclaimer above again for this is not a financial advice and whatever I claim here regarding the current XRPUSD price would not always follow a recommendation. I am just trying to picture out for myself and to any potential readers what will happen in the next trading days.
The Resistance Exhausted The XRP Buyers
The 0.26 cent resistance line has been giving a lot of frustrations on the XRP buyers as everytime they pushed the price near that line, auto rejections followed right after! They have tried at least. :-(
It has become a hostile ground since September 5, 2020 up to now. So hostile that it rejected the 0.26 cent price level literally 7 times if we take a look at the daily candles.
2 Crucial Lines Of Defense Have Been Broken Down
The first near term support that is broken down and I like to spotlight is the 100-day SMA at 0.25100+ level while the second support in casualty is the 50-day SMA at 0.24800+ level. Both supports can no longer hold the selling pressures made and dictated by the angry bears as they want more!
One Last Crucial Support Left That Can Be Game-Changing For XRP’s Much Needed Uptrend To 0.30 cents
The last man standing and an extremely crucial support that I am seeing right now is the 200-day SMA where all the hopes are left behind. When I say that it is a very crucial support, I mean it. Once it cannot hold anymore, the downward trend will plummet more deeply! But in the case it will hold, and then a game-changing pace will prevail as buyers can potentially drive XRPUSD price to 0.30 cents. I can see right now that there has been an overbought signal on XRP’s price action. Maybe investors and traders are not that convinced much in the recent Ripple Swell event.
COVID19 To Blame Again?
I frankly want to say that this pesky Coronavirus pandemic can be one of the factors for the ongoing onslaught not only for the XRPUSD but for most of the markets like Commodities, Indices and FOREX alike. You can try to view it yourself right now and you will know what I mean. I am reading news headlines regarding recent new lockdowns. One example is in the United Kingdom.
Is It A Comeback For The US Dollar?
Only time will tell. All I can say for now is if we read similar "hearsays" online, I suggest that we wait for the US election results and the outcome on the US Government stimulus. It is true that the greenback is making a short term comebacks at the moment of writing this article.
My Speculations For The XRPUSD Price In The Coming Days
I will continue to hold my XRPUSD long positions despite we are looking for a continued imminent selling pressures. There are only two reasons to defend my holding:
The overall fundamental news analysis for the XRP is way too strong to ignore! Prices can go up anytime. I have done my research and one of those is that, there is an increase number of XRP whales in the last days.
The upcoming XRP’s fork Spark tokens airdrop on December 12, 2020 cannot be ignored. This is a vital snapshot for I strongly speculate as the said date goes nearer and nearer, XRP demand will substantially increase hence making its price surge.
You may read my recent article about details on how I view the upcoming XRP utility fork:
In case if all my claims here go wrong then I will have myself to blame of not selling my XRP early.
Once again, thanks a lot for reading this article till the end.
As always, please take care and do utmost precautions in these dire times of pandemic.
May the LORD Almighty God protect you and your whole family!
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