Ripple (XRP/USD) Analysis December 8, 2017

XRP/USD analysis

Ripple (XRP/USD) Analysis December 8, 2017

Today let’s talk about banks and how XRP investors are set to lick their wounds. I’m not a cynic but everyone is trying to make money right? The FX market for which banks are the main players turn in around $5T per day, that’s a huge turn over that is controlled by a web of whale banks keen on capital gains irrespective of the asset traded.

Now, let’s pluck in the current price of XRP considering their main goal is to make Ripple a one stop platform for inter-bank and global remittance. At a ball park $0.25 and 35B XRP tokens in circulation, Ripple has a market valuation of $10B.

This valuation, my friends, is just a drop in the ocean.

News reaching us is that Ripple is setting aside 55B XRP for banks to purchase, guess what will happen to price? It will drop and it has already begun.

Of course it is illegal but there is nothing you can do as Ripple and banks haggle over bank friendly price thereby “moderating” them. Don’t be worried if Ripple cede ground and allow for something close to a “fire sale” price because they need banks to survive and the latter holds all the cards.

In my opinion, if you bought at peaks you might need to cut down on losses to prevent exacerbation. Once a deal is reached, trust me XRP will start exploding mainly because interested banks will be in and eyeing capital gains while Ripple will have the necessary corporate investment and participating in a lucrative $5.5T FX market.

These fundamentals are very important. Remember these tokens are often driven by market or company news just like share markets so sometimes technical indicators are rendered useless.

In the daily chart, XRP prices are testing the main support trend line inside a $0.18 range. This is actually the 6th month where prices have been consolidating after that May’s highs of $0.458 were tested.

 If prices remain this way then it looks likely that XRP will be trending at the lower range or even below $0.14 main support line.

For this to happen, XRP bears must first drive prices below this support trend line at $0.214. From yesterday’s price action, notice how prices hinted of bear pressure after a strong bear candlestick confirmed a close below the 20 period MA that begun on December 5.

Our entry chart shows some over-extended prices and a whole bull pin bar forming below the lower BB.

At the same time, bear momentum is strong given the way bear candlesticks are aligning themselves along the lower BB after that break out from the ascending channel.

The thing is, even if there is some bull pressure, the first resistance level at $0.233 might end up neutralizing bull pressure especially if a stochastic sell prints.

 It’s in my view that we sell XRP now that banks are looking to enter and initiate long at around $0.14 main support. Because of this, every highs is a selling opportunity.

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