XRP Melts Down, But Still Remains in A Technical Uptrend
How do you get a 250% high bull flag to break to the downside? You file a massive lawsuit against Ripple! Hi friends, Welcome to this update on XRP! Looking at the daily chart, we can see the absolutely dismal breakdown that has sent XRP into the depths of 0.20 hell. If you recall from the last analysis, I warned that "If the [bull] flag plays out to the upside (as we know not 100% of all bull flags do) the target is at 1.20." Unfortunately, this bull flag failed miserably. On the intraday timeframes, I could see that a negative shift was happening, when the flag consolidation began to take the shape of a head and shoulders pattern. I warned my Twitter followers that "Looks like we could see a pullback here. Be on guard." At that point, XRP was still in the consolidation, and well above 0.50.
Looking at the chart, we can see that XRP fell exactly to the top of the falling blue trendline, around 0.2038. When I saw that today, I knew it was time to buy the dip, and I also told my Twitter followers about that. Since then, XRP has had a nice bounce up to the 0.275 level. However, there is still a massive headwind for this asset. The allegations that the SEC has made against Ripple are very serious. However, after reading the SEC's complaint, it's my opinion that Ripple will either be victorious, or they will settle with the SEC and continue on with a clean slate. This could actually be a positive thing, ushering in a new era for Ripple and XRP. If Ripple can get past this baptism (if you will) from the SEC, it will show banks and other financial institutions that Ripple has essentially been deemed fit for business by the SEC. That would obviously have very positive implications for Ripple, regarding financial institutions who are on the fence about doing business with them for fear of regulatory or legal uncertainty. So, I'm optimistic that Ripple will overcome, and I still believe there is a bright future for XRP.
With that said, there will be more pressure, that is practically a certainty. Investors are likely to be reluctant to hold XRP, when there is such great uncertainty regarding delistings, the outcome of the litigations, and the impact this will have on Ripple itself. It's interesting that the SEC decided to drop this bomb on Ripple the day before Jay Clayton steps down, and as the entire industry has been setting up to moon to the next level. This is definitely an assault on the crypto industry as a whole, and I'm sure we will see more action from the SEC against other companies who have sold digital assets in the US.
On the chart, we can see that XRP appears to have found some significant support. Obviously, the key area to watch is the falling blue trendline. On the upside, we can see that XRP is now below the 200 day moving average (in purple.) If XRP fails to recover above the 200 day, we could see a breakdown of the uptrend, which is still intact. You can see there are a series of higher lows and higher highs on the chart, and despite this massive selloff, it's still currently a higher low. Furthermore, the accumulation/distribution indicator has fallen, but it's still ABOVE where it was at the all time high. In other words, more XRP is being accumulated now than at the all time high. On the money flow indicator, we can see that it's approaching oversold territory, which generally correlates to upside reversals on the chart.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Looking at the chart, we can see that XRP fell exactly to the top of the falling blue trendline, around 0.2038. When I saw that today, I knew it was time to buy the dip, and I also told my Twitter followers about that. Since then, XRP has had a nice bounce up to the 0.275 level. However, there is still a massive headwind for this asset. The allegations that the SEC has made against Ripple are very serious. However, after reading the SEC's complaint, it's my opinion that Ripple will either be victorious, or they will settle with the SEC and continue on with a clean slate. This could actually be a positive thing, ushering in a new era for Ripple and XRP. If Ripple can get past this baptism (if you will) from the SEC, it will show banks and other financial institutions that Ripple has essentially been deemed fit for business by the SEC. That would obviously have very positive implications for Ripple, regarding financial institutions who are on the fence about doing business with them for fear of regulatory or legal uncertainty. So, I'm optimistic that Ripple will overcome, and I still believe there is a bright future for XRP.
With that said, there will be more pressure, that is practically a certainty. Investors are likely to be reluctant to hold XRP, when there is such great uncertainty regarding delistings, the outcome of the litigations, and the impact this will have on Ripple itself. It's interesting that the SEC decided to drop this bomb on Ripple the day before Jay Clayton steps down, and as the entire industry has been setting up to moon to the next level. This is definitely an assault on the crypto industry as a whole, and I'm sure we will see more action from the SEC against other companies who have sold digital assets in the US.
On the chart, we can see that XRP appears to have found some significant support. Obviously, the key area to watch is the falling blue trendline. On the upside, we can see that XRP is now below the 200 day moving average (in purple.) If XRP fails to recover above the 200 day, we could see a breakdown of the uptrend, which is still intact. You can see there are a series of higher lows and higher highs on the chart, and despite this massive selloff, it's still currently a higher low. Furthermore, the accumulation/distribution indicator has fallen, but it's still ABOVE where it was at the all time high. In other words, more XRP is being accumulated now than at the all time high. On the money flow indicator, we can see that it's approaching oversold territory, which generally correlates to upside reversals on the chart.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Aviso legal
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