Even as XRP proponents insist that the coin is fully decentralized and a utility, XRP is technically in a down trend aside recent recovery. Fundamentally, we expect a recovery in sync with Brad Garlinghouse comments that institutional money will be funneled to XRP this quarter and our optimism seems to be high now that prices are actually expanding with XRP printing a five percent gain in the last week and in the past 24 hours.
In recent weeks, eToro, the Tel Aviv based social trading platform has been a news topper. It’s not because of their services but because at the rate at which is supports coins as XRP and providing opportunities for investors to trade them against fiat as JPY and GBP. Shortly after declaring their support of IOTA, the platform is now availing XRP/JPY and XRP/GBP opening further investment opportunities for impatient investors who can’t wait for approval at crypto exchanges.
But, while it’s rosy, here’s a disclaimer you should know before investing: Once you buy cryptocurrency on eToro, the social trading platform will be holding XRP on your behalf and there is no margin trading. Additionally, there is no investor protection since the crypto market is after all global and not under any form of regulation.
Regardless, Ripple Lab’s XRP is technically a hot investment as it tries to bottom up after a value draining eight month of bears. Going by Brad Garlinghouse words, the market is expectant of a wave of institutional level investors to head back to crypto and XRP by Q3 2018. All things constant, this is the same narrative that market influencers have been looping since the beginning of the year safe the changing time frames. However, should we see actual movements on charts when buying resumes on exchanges, not on OTC markets, then XRP might be on the way back to $1 or higher.
XRP Technical Analysis
On a weekly basis, the third most valuable coin is up two percent. As such there is a clear rejection of lower lows as the chart shows.
However, while this may seem “relieving” and “positive” from a bull’s perspective, traders should realize that prices are still moving inside Aug 12 high lows. After all, the bar is by itself extremely bearish. Besides, it’s an anchor and a bear break out bar and will surely influence price action going forward.
In that perspective therefore, our price projection of XRP is bearish. That’s unless of course there are moves above 55 cents.
In this time frame, it’s clear that prices are trading within a bear break out pattern set in motion by Aug 6 bear candlestick breaching 40 cents.
Though there are attempts of higher highs, it’s likely that this will be another recovery, a retest. As a result, a reasonable first target is at 40 cents—our immediate resistance line.
Because of recent rejection of lower prices after Aug 17 high volume bear engulfing candlestick, buyers might have an upper hand today. In that case, taking longs at spot rates with stops at 30 cents could pan out alright.
Disclaimer: This is not investment advice and views represent that of the author and not NewsBTC. Do your own research before making an investment decision.
Ripple image via Shutterstock.