Ripple - Do not be without worries On 8th August 2022, we introduced a setup with two alternative trades coming after the breakout from the wide range in which XRPUSD oscillated for some time. A few days later, a piece of news concerning a minor win for Ripple Labs Inc. against the SEC sparked a buying frenzy that propelled the price more than 40%. Meanwhile, in the early stage of the rally, we noted that this price action merely represented “buy the rumor, sell the fact.”
Then, during the rally, we continued to warn investors about the unsustainability of the move as we hinted at decreasing volume in spite of the rising price. Indeed, we raised this issue again after another bullish breakout from the symmetrical triangle took place. Soon after that, our worries came to fruition, and XRP began its decline.
At the moment, XRPUSD trades almost 20% lower from its recent high on 23rd September 2022, further confirming our bearish thesis. In fact, we stick to our price targets of 0.30 USD and 0.28 USD and believe they will be reached by the end of 2022. Our views are supported by persisting bearish macroeconomic factors and technical indicators pointing to more downside for this cryptocurrency.
Illustration 1.01
Illustration 1.01 shows the daily chart of XRPUSD. The price is down almost 20% from its recent peak of 0.558 USD, and volume continues to reflect the declining interest in XRP among new investors.
Technical analysis - daily time frame
RSI is bearish. The same applies to Stochastic and MACD. DM+ and DM- are bullish. Overall, the daily time frame is turning bearish.
Illustration 1.02
Illustration 1.02 displays the monthly chart of XRPUSD, showing it deep in the bear market territory.
Technical analysis - weekly time frame
RSI, MACD, and Stochastic show signs of exhaustion. DM+ and DM- stay bullish. Overall, the weekly time frame is turning bearish.
Illustration 1.03
Illustration 1.03 shows the mentioned setup from 8th August 2022. That same day, we set a medium-term price target for XRPUSD at 0.30 USD and a long-term price target of 0.28 USD, abstaining from setting a price target for the short-term (due to the price being in the neutral trend).
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
