Whether Bitcoin and other altcoins are finding support or not, we still hold a bearish inclination as far as XRP prices are concerned. It’s all because of simple reasons. First, there is a close below 45 cents and 2018 lows and secondly, Bitcoin (BTC)-which anchors most coins is also struggling to stay afloat. Both of these forms a basis for our price projection in the short term where XRP sellers are eyeing 30 cents and later 15 cents in line with our previous trade plans.
- It’s no doubt that XRP is under immense sell pressure. The bad thing is that there are influencer XRP whales keen on unloading the coin and exacerbating the already worse situation. Top of that list is an XRP account holder known to have almost 1.08 billion XRPs. According to unverified sources, the owner has been dumping XRP on every price appreciation since the beginning of the year. With 340 million XRP remaining as early as March this year, the owner sold 100 million more in April and further liquidated 10 million more yesterday. Perhaps that’s why we saw a four percent drop of XRP prices yesterday!
- According to TechCrunch Founder and owner of Arrington XRP Capital, a hedge fund dominated by XRP- Mike Arrington, XRP is fantastic, cheap and convenient. While this are some properties that define XRP since inception, the cost saving aspect when companies or funds make use of XRP is incomparable. For example, when Mike said his fund moved $50 million with that transaction settling almost instantaneously and paid 30 cents for that transaction.
- You can now register at Bitcoin Superstore and pay for merchandise or services using XRP from leading online retailers as Amazon or eBay. Besides checking out and settling in XRP, you can also buy gift cards from online shops as Nike for example straight from Bitcoin Superstore.
At current prices, XRP is down more than 85 percent from its ATHs and if sellers keep up then we might see further degradation.
We can begin by checking out our trade plan and note that we had marked out our support zone between 40 cents and 45 cents.
Secondly, we had also noticed that XRP prices were largely in consolidation with limits at 55 cents on the upside and 45 cents on the downside.
This defined our trading for over 30 days until after last week when for the first time this year, we had a whole bear candlestick closing below 45 cents and partly confirming our sell assertions.
We can easily see this position even when we look at metrics. XRP is down 20 percent week over week and that is low considering that XRP has been in ranging for the better part of July. So, because of this, we are net bearish and recommending shorts on every pull back.
Despite BTC gains in the last 12 hours or so, we still retain a bearish stand and expect sellers to confirm Aug 6 lows.
Aug 6 bear candlestick defines our short term price action and with caps at 45 cents, any XRP gains towards former support now resistance should provide good entries for sellers looking for better risk reward entries.
I suggest selling with stops at 40 cents and first targets at Oct 2017 highs at 30 cents before the ultimate targets of 15 cents is hit.
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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