Ripple (XRP/USD) Analysis December 13, 2017
Noticed that huge spike on December 8? Well, it was something good for investors. In a tweet, Ripple announced that they were locking up 55 XRP tokens in an escrow so that “people can now mathematically verify the maximum supply that can enter the market” and at any given time any interested party can know the amount of XRP in circulation. Well, this is good news for XRP and as noted previously, the “centralization” of XRP wasn’t a good thing. This is because if Ripple decide to release them, the token over-supply would damp prices at the expense of investors.
Price action in the weekly chart is flat now that price action is still defined by week ending November 19 price action. That week ended as a bull with XRP prices tested both limits of the bull wedge at $0.32 and $0.18.
At the moment, we are bullish but then we must watch the 20 period MA which has been acting as a solid support for the past few days. All in all, bulls would be buoyed if price action close above last week’s highs and resistance trend line and ignite buy pressure towards our ideal take profit at $0.73 as marked by Fibonacci extension level.
Like the weekly chart, the daily chart is price action is bullish and this is the 4th time price action is bouncing off the support trend line within the $0.18 trade range. However, unlike before, there is some real intention by XRP bulls to push and close above the 20 period MA now that we have a stochastic buy signal.
We should keep in mind that if today end up being bullish, then there is some degree of bull trend resumption and confirming December 8 bullish engulfing pattern along main support trend line.
In our entry chart, we should watch two levels. The first is the lower limit of the ascending channel and the immediate support line at $0.23.
Worth noting is the steady buy pressure after bulls broke and closed above the middle BB on December 11. The way price action is set up hints of a possible break above the immediate resistance trend line and higher highs along the upper BB.
If that happens, December 8 highs of $0.30 would be our immediate bull target with stop losses placed below $0.23
