XRP_Symmetrical_Triangle_Setup
Updated
Macro:
With the SEC v. Ripple case nearing a resolution, XRP has entered my radar despite uncertainties regarding its classification as a security. Ripple responded to the SEC's supplemental authority letter, disputing the regulator's legal precedent and raising doubts about the applicability of the Securities Act to Ripple. Further developments on the case will be monitored closely.
Recap:
* Ripple attorneys respond to the US Securities and Exchange Commission’s (SEC) supplemental authority letter citing a legal precedent that allegedly renders Ripple's "fair notice" defense helpless.
* Ripple attorneys detail that the legal precedent does not allow the regulator to reject the fair notice defense.
* The fair notice defense under the US Constitution’s Due Process Clause requires that “the language of any criminal statute be sufficiently clear to objectively give fair notice of what is prohibited” and is part of Ripple’s defense against the SEC’s allegations in the SEC v. Ripple lawsuit.
* Ripple argues that the Securities Act applies differently to Ripple than it did to Commonwealth Equity Services LLC, which is cited in the SEC's legal precedent, making the facts and evidence of the two cases different.
Technical:
XRP has broken out of its descending channel and reached a high of .58 before retracing to .40, marking its first bullish uptrend since September 22nd. Currently, XRP is in a symmetrical triangle pattern on the higher timeframes (4HR, 1D). I will look for a breakout above the apex to enter a long position or a breakdown for a short opportunity. Entry and targets are as follows:
Entry: .55
TP1: .62
TP2: .72
TP3: .78
With the SEC v. Ripple case nearing a resolution, XRP has entered my radar despite uncertainties regarding its classification as a security. Ripple responded to the SEC's supplemental authority letter, disputing the regulator's legal precedent and raising doubts about the applicability of the Securities Act to Ripple. Further developments on the case will be monitored closely.
Recap:
* Ripple attorneys respond to the US Securities and Exchange Commission’s (SEC) supplemental authority letter citing a legal precedent that allegedly renders Ripple's "fair notice" defense helpless.
* Ripple attorneys detail that the legal precedent does not allow the regulator to reject the fair notice defense.
* The fair notice defense under the US Constitution’s Due Process Clause requires that “the language of any criminal statute be sufficiently clear to objectively give fair notice of what is prohibited” and is part of Ripple’s defense against the SEC’s allegations in the SEC v. Ripple lawsuit.
* Ripple argues that the Securities Act applies differently to Ripple than it did to Commonwealth Equity Services LLC, which is cited in the SEC's legal precedent, making the facts and evidence of the two cases different.
Technical:
XRP has broken out of its descending channel and reached a high of .58 before retracing to .40, marking its first bullish uptrend since September 22nd. Currently, XRP is in a symmetrical triangle pattern on the higher timeframes (4HR, 1D). I will look for a breakout above the apex to enter a long position or a breakdown for a short opportunity. Entry and targets are as follows:
Entry: .55
TP1: .62
TP2: .72
TP3: .78
Note
Please note that the information provided is for entertainment purposes only and should not be considered trading advice or personal investment advice. The response does not take into account your individual circumstances or financial situation, and any investment decisions you make should be based on your own research and analysis.Note
Technical Update: When trading XRP, it's important to wait for a strong move toward our entry point to validate our trades, rather than jumping in too early and risking losses due to sideways action. Setting up entries at key fib levels can minimize false positives and increase the probability of successful trades in either direction. We should give XRP time to settle and show its hand before adjusting our strategy accordingly. We can take trades in either direction based on the price movement. The long entry and targets remain the same. See below for short entry and targets if XRP gives us an opportunity to short.
Entry: .49
TP1: .46
TP2: .44
TP3: .42
Macro Update:
Ripple has launched a liquidity hub for businesses to bridge the gap between cryptocurrencies and fiat, but XRP was surprisingly left out of the pilot program. Ripple's Chief Legal Officer clarified that the Liquidity Hub is aimed at institutional customers rather than retail investors, and it was designed to access all kinds of crypto liquidity, not just XRP. The lack of liquidity and regulatory clarity for XRP in the US are the main reasons why it was not included in the pilot program. However, Ripple is open to supporting XRP in the Liquidity Hub in the future, provided that it can provide a good customer experience and regulatory clarity. Ripple's sales of XRP are all to On-Demand-Liquidity (ODL) customers, indicating strong demand for the product globally.
Takeaways:
* XRP was left out of Ripple's liquidity hub pilot program, which is aimed at institutional customers
* The lack of liquidity and regulatory clarity for XRP in the US are the main reasons why it was not included in the pilot program
* Ripple is open to supporting XRP in the Liquidity Hub in the future, provided that it can provide a good customer experience and regulatory clarity
* Ripple's sales of XRP are all to On-Demand-Liquidity (ODL) customers, indicating strong global demand for the product.
Trade active
A short entry for XRP was activated and the first take-profit level was reached. I am anticipating a rejection at the 100 EMA, which also aligns with a potential breakdown below the lower symmetrical triangle pattern.Note
XRP is persisting in its downward trend as the majors, BTC and ETH, experience declines. If any relief rallies occur, I'll be watching for reversals at crucial Fibonacci retracement levels, specifically 0.5 at $0.46 and 0.382 at $0.49. There isn't substantial support at $0.46, so it's probable that bears will successfully drive momentum towards $0.44, which is our second target price (TP2). I'll maintain my position and will add to our position as we approach TP2.Trade closed: target reached
All targets met. On to the next.
Pierre Pressure
FOCUS - FIGHT - WIN
FOCUS - FIGHT - WIN
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