XRP Analysis: Is Support found at $.7600?

beyondthehodl (28)in #xrp • 7 years ago (edited)

What a crazy week it has been for #XRP! From being in a consolidation and quiet for some time, to having rumors of it being listed on coinbase “push price up”, to crumbling down by 30% in just a few short days.

This week is a perfect example of why I choose not to use fundamental analysis to get in and out of trades. Such type of analysis should not be used to get into trades because your risk would have to be too large. Can you also imagine the headache one must have trying to keep track of all the news, opinions of analysts, the masses, governments, and institutions? Perhaps a large hedge fund with hundreds of employees would be able to make such appropriate analysis, but they also have much smarter people than myself who use tools we cannot even comprehend to make their quantitative and qualitative analysis. A fundamental analyst might have the long term view of an asset right but in the near term this might fail as the prices could crumble until a few months or even years until their targets are hit.

So what did my analysis look like?

On my last article, I spoke about wanting to see the zone between $0.8100 and $0.7150 as potential areas of support. However as explained above we went straight up and went on to hit my second target of $1.06, which I would of wanted to see had we FIRST seen my support levels been hit. It was a very suspect move to me that we saw price rise without hitting my support levels. This made me believe that we would be seeing prices go straight back down, and this is indeed what happened. The last confluence which made my decision to believe Ripple was not going higher was #BTC not breaking my $12,300 level, and instead rejecting at at previous resistance of $11,800 as called on our bitcoin article.

Since, we have hit my support zone which means that there is a possibility of prices to FINALLY rise from somewhere inside it, as long as the conditions are right. A break below the $0.7000 level would be deadly and I believe we would then see prices fall BELOW $0.5500. However, at this time I have bitcoin potentially hitting one of my support targets which would indicate an aggressive move higher on #Ripple. If we can find some support these are the targets I would be expecting to see moving forward:

Target 1: $0.9000
Target 2: $1.0000
Target 3: $1.1500
Target 4: $1.2550