Will XRP make a decisive move before the end of the year?
Updated
XRP has been in a descending triangle for the entirety of 2018 and 2019, one where we are rapidly approaching the apex and the potential for a big move.
The argument for a big break upward towards $1:
The argument for a break back down towards 15c (possibly even 10c):
With so much mid-term uncertainly, this could also just result in XRP staying around the current range of 20-30c for far longer. Which way do you see XRP moving in 2020?
Save crucial space on your Trading View chart by utilising the free RSI and StochRSI indicator which overlays both in a clear and helpful fashion.
Please give me a thumbs up and follow me if you found my analysis interesting. This is for educational purposes only and not a recommendation to buy or sell.
The argument for a big break upward towards $1:
- At Swell, Ripple confirmed it now has over 300 customers.
- Though only a small number of those are using On-Demand Liquidity (ODL), growth is definitely there, but it's a slow burner.
- In the long run, once XRP/ODL is in widespread usage, a higher valued XRP will mean a 0.1% value fluctuation in the few seconds it takes for a transaction to complete will have far less impact than if XRP is only a few cents each. It's not essential, but a $100 XRP provides less potential slippage than a 1c XRP.
The argument for a break back down towards 15c (possibly even 10c):
- Ripple owns 60% of XRP in escrow and releases one billion XRP each month for sale “to grow the team, business and ecosystem” which obviously suppresses the price massively (despite the fact that often a lot is not sold and placed back into Escrow at the back of the queue).
- At the current rate, it is estimated that it will take 225 months (18 years and 9 months) for the final selling of XRP from escrow to finish.
- The weekly Stochastic RSI is carrying a lot of momentum to the downside - easily enough to take us to 10c (though I have my doubts that Ripple would allow XRP to go below that).
- Personally I'm quite bearish on BTC for the next few months and XRP is not yet decoupled from Bitcoin, so if one goes down the other will too.
With so much mid-term uncertainly, this could also just result in XRP staying around the current range of 20-30c for far longer. Which way do you see XRP moving in 2020?
Save crucial space on your Trading View chart by utilising the free RSI and StochRSI indicator which overlays both in a clear and helpful fashion.
Please give me a thumbs up and follow me if you found my analysis interesting. This is for educational purposes only and not a recommendation to buy or sell.
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