XRP: the face of the beast...XRP: The face of the beast
I) Introduction
I do not know if you remember but last week I described XRP on the daily chart at the hedge of:
-Long term parabolic resistance
-EMA55 resistance
-Middle and long term support based on trendline in orange (long) and purple (middle)
You will find more details here:
The price is currently contracting among these indicators and XRP will have no choice to brutally cross over (or under) at some point.
Why brutally?
Remember, that price motive acts like an energy; it contacts, reinforces, implodes and explodes.
Why this current analysis is interesting and what does it bring vis-à-vis the last one? I aim at describing price moving like energy and forming perfect figures through price contractions and explosions that are comprised through supports and resistances.
Methodology and analysis
a) I have drawn a slope from the bottom to wave “iii” (August 2014 to 17 May 2017), you can find more details on my counting here:
b) I have drawn a circumference of 2.111 (in white) which is an extension of the square root of the golden ratio 0.236:
a. 55/233 = 0.236
b. 1+0.236 = 1.236
c. √1.236 = 1.111
d. The extension of this number is 2.111 (1.111 + 1)
c) I have drawn a trendline along the previous slope from the bottom to wave “iii” with the constant “pi”, which is “3.141592653589793”. I have used “pi” as an axe and it perfectly matches the price movement of XRP inside the circumference of 2.111, you can see that from this number, I have been able to draw my resistances and supports in orange and purple. Look at how XRP is prisoner inside the resistances and supports
d) Going back to 2.111, it shows that XRP is moving against this parabolic line and has difficulties to get it out and EMA55 is perfectly touching 2.111. EMA55 is the price moving average of XRP during 55 days and 55 days is a golden number.
e) XRP succeeded to break above this EMA55 in April but failed against 2.111
f) Today, EMA55 and 2.111 are in convergence, they are crossing each other, and we can clearly see that XRP is in contraction against all the resistances and supports
a. In orange (long term support)
b. In purple (short term support) that is crossing the orange long term support
c. Against the resistance 2.111 (in white) and EMA55 (in yellow)
II) Something is missing
You will say, thank you Magic’ArKaiN but you just provided more details and identified perfect Geometry Figures, what’s the point here? You already described all these things in you previous analysis…
Let there be light…
A support that is broken becomes a resistance and a resistance that is broken becomes a support…
Let me repeat this again, a support that is broken becomes a resistance and a resistance that is broken becomes a support…
So where are the supports and resistances in this grand scheme of things?
Methodology
g) I have drawn a trendline in yellow in the circle along 3.14 but this time; I have used 4.772 (time level) which is the extension of “pi” (√3.14) +3. Remember that 4.772 perfectly matches with the slope 3.14 that I have drawn (point “c” previously described)
h) I have drawn a trendline in green through 5.236 (time level) which is an extension of 0.236. Remember that in proportion 5.236 perfectly matches 2.111 white parabolic circle (Point “b” previously described)
Analysis
In 2014…
At the very beginning of November 2014, 3.14 was used as a support before XRP broke out in wave “i”
Then, it was broken and 5.236 was a new support and rejected, so resistance 3.14 was put at a test but got rejected and the price contracted between the new support 5.236 and the new resistance at 4.772 but got broken again… You know what happened after and I am not going to detail this…
Excepted if…
Excepted if 5.236 support is broken, yes… It will hurt very badly but if 5.236 is not strong enough, XRP will go very low… I prefer to warn you! I will talk about this in the next paragraph…
In 2017…
In May 2017, both 5.236 and 4.772 were crossed over very quickly but XRP had to face the 3.14 monster resistance (the one that plunged XRP to The Abyss in 2014).
Then, guess where XRP found its support? Bim!! At 4.772 (in yellow), it is exactly there that it broke out in December 2017 and everyone got crazy about the price increase!
In 2018…
I am sure you will not believe me but where are we standing today? Ok I let you find it, you have 3.14 seconds to find it…. Tata!! After the breakout in December 2017, XRP found a rejection again at 3.14…
And where did XRP found a support? I am sure that at this stage, it is not a surprise anymore to tell you at 5.236 (in Green) and where did it find a resistance? At 4.772! it is Magic!
Conclusion
My timeline analysis is driving me to the exact same conclusion: we are at the hedge of a HUGE price move. You can find more details here:
We understand that XRP had a 3.14 (in grey) rejection in Jan 2018 and is now moving between 5.236 support (in green) and 4.772 resistance (in yellow) like in 2014/2015. Please, take also into account my detailed analysis in the introduction of this analysis (with the parabolic line – 2.111 and EMA55).
So, why XRP should not fall down below its old support, like it did in August 2015? Because as you understand now, there is no other way around, we go to the TOP or to the MEAN! It is a huge price uncertainty for the traders. That is why the price is basically moving aside at the moment…
The 3.14 Beast Monster becomes weaker and weaker baby!
The face of Monster in June 2015 –
He looked very confident and strong, he gives even some spaces to XRP to nearly 13.40%
The face of the Monster in May 2017
He looks still strong but the space that he gave to XRP is nearly 0%...
The face of the Monster in December 2017
Damn!!! You look bad, you gave, 125% to XRP! Call a doctor!
What could be the face of the Monster during the next price increase and will it succeed to cross over and find 3.14 not at a resistance but as a support?
Beyond technical analysis, what the fundamental analysis is telling us?
In 2014 / 2015
• Mt.Gox crash (biggest Crypto Exchange, 70% of the market)
• Very much uncertainty in the market and low visibility on business case projects
• Not so much news, very wild and rustic market reserved for the geeks
Today
• More investors and trading platforms
• Good news every single day
• New partners
• Institutions being interested in XRP
What is your opinion? Please, share my analysis and put a comment below if you dare!
Ma maîtrise est sans faille et mon skill sans égal !
Magic`ArKaiN
