Ripple (XRP/USD) Analysis January 11, 2017
Do you really think that this cross payment facilitating token will bleed in the coming weeks? The thing is no one knows for sure especially now that we have a new player on the block.
In the my opinion, the decentralized nature of Lumens running on Stellar just like XRP running on RippleNet is more attractive since the idea is pitched on ordinary investors not global banks.
Of course, XRP investors should be looking at themselves and their products rather than competition right? The journey to the moon look to be on their early stages and hodlers should be buckling up. Nonetheless, should there be a concern now that last week’s candlestick was above the upper BB? If it is a reason of concern then we should critically at price action as it prints in the weekly chart.
As we can see, the trend is up. XRP is rallying and it is not always pretty to fade a strong trend like this. However, there are some few support lines we should be watching as bears continue to maul prices in lower time frames.
The first is that 4th Fibonacci extension level at $1.92 and it is this week’s low which if sellers close below it might trigger a full blown bear rally to compensate that over-valuation after week ending January 7.
Prices are obviously trickling down in the daily chart and after those bear candlesticks, our focus now shifts to the middle BB and $1.92.
Will prices dip and close below the first support at $1.92? That is what we should be asking ourselves but let’s see what price action brings forth today.
Sellers are on the driving seat and have almost recovered last week’s gains. A simple Fibonacci correction tool shows that prices are at the 78.6% level and that’s close to 80% correction from last week’s highs.
It’s a concern for buyers especially if we don’t see any movement to the upside in the next few hours. From the way bear candlesticks are aligning themselves along the lower BB, I don’t think prices might turn up quickly.
Intra-day traders should be on the sidelines until after a clear signal prints but bear in mind that last week’s bull candlestick was 98% above the upper BB. This correction was inevitable and for longs, I need to see prices closing above the 61.8% Fibonacci level at $2.24.
