XRP: Reevaluating a New Point of Entry
These are just some notes regarding my long position on XRP. The fundamentals of the asset are the same.
We are just going through turbulent times, where the majority of people value having cash on hand rather than any other asset. Some may say that this isn't very reasonable since the Fed's easy money policy may cause extensive inflation, but thinking about it deeply, we can empathize with our fellow human beings, as they try to cling onto a sense of security. What's more secure than having something in your hand? Historically, even though the educated knew that if everyone took their money out of their banks, this would cause a bank run and our entire financial system could come to a complete halt. But people are people and when they fear that things are turning for the worse (especially when the cause is the financial institutions themselves), it is no wonder that many opt into cashing out whatever they can get their hands on. This is human psychology and should be noted whenever there are times of crisis. People may argue for gold or BTC as a safe-haven asset because it "makes sense" to them. But when the world looks like it's about to end to a normal person, the first thing they think of is "How am I going to buy the stuff I need?" Are they going to think about buying gold? I don't even know how to get some. What about BTC? That's considered fake internet money to retail investors at this point in time. It's experimental. It's a way to get easy money because of its volatile nature, nothing more and nothing less.
In short, most people don't think in ways we'd presume to be the best course of action. They follow fear. And that makes sense. That's human nature.
So what can we do now since we're so heavily invested into XRP, considering that we of the XRP community absolutely believe in its long-term value and dominance in the space?
We seek an evening out of the oscillations of our measure of central tendency (our 50-day) and we want to find a bottom. Only until then, will I buy more into XRP. I don't care about the price. I don't care about the swings. What I care about is understanding the nature behind the numbers, acknowledging what I know and don't know, while trying to make the most well-informed and cautious decision.
Once we find a level of support of 3 times (our bottom), I will purchase on either the 4th retest of that level of support or the most imperative level of resistance that is evident in the chart: the solid red line, depending on environmental factors (like if we've developed an accessible cure to COVID-19).
This has been your eternal student, your abnormal account, your future millionaire nomad.
-LB
We are just going through turbulent times, where the majority of people value having cash on hand rather than any other asset. Some may say that this isn't very reasonable since the Fed's easy money policy may cause extensive inflation, but thinking about it deeply, we can empathize with our fellow human beings, as they try to cling onto a sense of security. What's more secure than having something in your hand? Historically, even though the educated knew that if everyone took their money out of their banks, this would cause a bank run and our entire financial system could come to a complete halt. But people are people and when they fear that things are turning for the worse (especially when the cause is the financial institutions themselves), it is no wonder that many opt into cashing out whatever they can get their hands on. This is human psychology and should be noted whenever there are times of crisis. People may argue for gold or BTC as a safe-haven asset because it "makes sense" to them. But when the world looks like it's about to end to a normal person, the first thing they think of is "How am I going to buy the stuff I need?" Are they going to think about buying gold? I don't even know how to get some. What about BTC? That's considered fake internet money to retail investors at this point in time. It's experimental. It's a way to get easy money because of its volatile nature, nothing more and nothing less.
In short, most people don't think in ways we'd presume to be the best course of action. They follow fear. And that makes sense. That's human nature.
So what can we do now since we're so heavily invested into XRP, considering that we of the XRP community absolutely believe in its long-term value and dominance in the space?
We seek an evening out of the oscillations of our measure of central tendency (our 50-day) and we want to find a bottom. Only until then, will I buy more into XRP. I don't care about the price. I don't care about the swings. What I care about is understanding the nature behind the numbers, acknowledging what I know and don't know, while trying to make the most well-informed and cautious decision.
Once we find a level of support of 3 times (our bottom), I will purchase on either the 4th retest of that level of support or the most imperative level of resistance that is evident in the chart: the solid red line, depending on environmental factors (like if we've developed an accessible cure to COVID-19).
This has been your eternal student, your abnormal account, your future millionaire nomad.
-LB
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.