Ripple Price Analysis: XRP Bearish Below 40 Cents, NY Ready to Explore

technical analysis ripple

Latest Ripple News

Enthusiasts often paint a rosy picture on the burgeoning internet of value claiming it will disrupt and eventually replace centralized set-ups. But before this come to pass, the community understands that education and general awareness is key. It is for this reason that Ripple has so far donated $80 million to various causes.

On their part, regulators from around the world are keen on executing their mandate in a world that promise to operate on auto-pilot with systems set to cut-off third parties. As the ecosystem matures, it is no doubt that there will be applications and platforms that will not only be fast and widely adopted but also secure and completely anonymous. The blockchain community is calling for these inherent features to be enhanced.

Even though the state of New York is stringent and “protective of their investors”, it is now ready to immerse itself and explore cryptocurrencies and digital assets. In December 2018, Governor Andrew Cuomo signed a bill creating a task force made up of retail investors, technologists, consumers and consumers with a single objective of studying blockchain technology. By Dec 15, 2020 they should submit their findings detailing their legislative and regulatory recommendations.

Ripple (XRP) Price Analysis

After promising price expansions of late Dec 2018, XRP is steady, down to third and ranging. Gains are minimal and after consolidating for a week, it is likely that bears will emerge on top.

If that is the case, we expect bears to drive prices below Dec 28 lows of 34 cents. This will be so especially if bulls fail to build enough momentum and close above our resistance zone at 40 cents. The level is of prime importance in our analysis. It marks the 61.8 percent Fibonacci retracement level when the tool is drawn based on Sep 2018 high low. Remember, Sep was a trend defining month. Because of increasing buy activity and the failure of bears to wipe out those gains even after three months of steep declines, we maintain a bullish outlook.

However, in the short term, our trade plan is dependent on the reaction of XRP prices at 40 cents. As mentioned yesterday, a breakout supported by abnormal market participation could open doors for 60 cents and even 80 cents by close of Q1 2019.

As such, our XRP/USD trade plan is as follows:

Buy: 40 cents—Breakout trade preferably with above average volumes

Stop: 37 Cents

Target: 55 Cents, 60 Cents, 80 Cents

All Charts Courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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