| XRPUSD | OVEREXTENDED MOVE HAS REACHED ITS RESISTANCE!Good day all, This article is an extension of my previous article, which basically explains the direct correlation to the previous bear market structure. The first article is recommended to be read prior to this and therefore I am linking it below:
Now that you have scoped that article all of this will make sense. I have zoomed the time frame to the daily chart and have found even better results of correlation between the two time zones. As seen in yellow these levels of support and resistance are indicated as being the previous bear market's strong levels of support and resistance. Now the correlation between the 2 aren't exact but are almost exactly $0.025 apart from each other which is an astoundingly interesting finding as past price action does tend to rhyme.
If you read the last article you will see why I have placed month intervals from 17-19, if not they indicate the months following the beginning of the bear market in each respective time zone, which happen to be the same amount of months leading up to the most recent explosion in price. This fact alone would be a coincidence however after analyzing the daily chart correlation I have found key levels which are too similar to be a coincidence and therefore can be used as a good indicator of where the price could go.
Some would argue that XRP has finally detached itself from the BTC cyclical structure due to the most recent hike in price leaving BTC in the wake, however, what you must understand is there are always going to be idiosyncratic events that detach individual assets from a general cyclical market mover, which in this case in BTCs market structure. The idiosyncratic event as we all could guess is the current SEC VS Ripple summary judgment brief news.
Another bearish indicator based on this current news is that generally investors and retailer traders tend to buy the news and sell the release and this may be one of those cases, even though a win for Ripple would be revolutionary news it will most probably result in a healthy retracement back down to the cyclical average as the idiosyncratic phase as passed.
I will also add fuel to the fire by adding that we still have plenty of bear market left based on the halving cycle being far from sight and a potential continuation of the bears for BTC, which in terms is a catalyst for the continuation of the entire market to the downside.
Reference to 2019 May-June (17th month): In this time period the price experienced a move of above 60% growth within this month placing XRP above the previous resistance that it had consolidated below for around 171 days which made this resistance exceptionally strong, however, the price eventually converted this resistance into support for a period of 57 days before all hell broke lose and the price saw a steady decline leading to the 2020 bottom on the 13th March at the valuation of just under $0.11. I am not in turn coming out by saying the price is going to reach these levels again but that is what the historical data shows. The Image below expressed the price action of the 17th month which correlates well with the current 17th-month price action:
Reference to 2019 June-July (18th month): We have not entered the 18th month yet however, based on prior correlation at such an accurate degree we could see such price action occur. We saw a retracement at the beginning of the month in order to create the structure for the double top that followed near the end of the month. The price touched the key support level multiple times solidifying the $0.38 level as a strong support and resistance level for future prices. I have attached both the 17th and 18th-month price action to better understand the double top:
Reference to 2019 July onwards: The price did not hesitate to continue at a fast pace to the downside leading to the eventual bottom at $0.11 in march of 2020, 256 days later. If I had to use the exact amount of time between the 19th month and the bottom to call a bottom of the current market it would put us at the 25th May 2023. This is not by any means a legit statement however if the price action does follow the general action of the past we could see a bottom around that time, which analysts have predicted prior to my findings. So who knows, all we can do is speculate and use the past as an indicator at the end of the day. I have attached an image of the whole 2019 bearish period up to the current price:
I am thoroughly thanking you if you got this far in the article and if you did please comment your opinion and leave a like, would be much appreciated.
