- Ripple Price is range bound with caps at 40 cents
- Ardo Hansson, a member of ECB, berate cryptocurrencies
- Trading volumes are low
Although Dec 24 bull bar did rouse traders, XRP/USD is ranging with caps at 40 cents. Going on, we expect prices to expand above 40 cents towards 60 cents or higher in coming days.
Ripple Price Analysis
With each passing day, XRP’s lack of volatility may be ideal for Ripple and banks transacting using xRapid. However, for traders, this stable coin status means XRP is one of the few under-performing coins in the last 24 hours.
At current rates, XRP is up 3.9 cents against the USD and bulls are yet to close above the all-important resistance level at 40 cents. If it goes on like this then, then we shall retain a bullish outlook, but in light of existing conditions, traders would better halt their trading until after there is a definite break and close above previous support now resistance at 40 cents.
Coincidentally, this level is the 61.8 percent Fibonacci retracement line between Nov-Dec 2018 high low.
On the macro side of the equation, Ardo Hansson—a member of the European Central Bank and a Governor of Estonia asserts that cryptocurrencies are a fad and a “fairy tale.” In a conference to mark Estonia’s five years with the Euro, the Ardo said crypto is a “load of nonsense” clutching on straws. He goes on to say that unless there is some market equilibrium, the crypto bubble will go bust.
“The bubble is collapsing, and maybe we should see how far this collapse goes, and what is left when we’ve reached a new kind of equilibrium. I think we will come back a few years from now and say how could we ever have gotten into this situation where we believed this kind of a fairy-tale story.”
He goes on to issue a precaution saying if “grandmothers invest in this” then there should be fitting regulatory protection on the ground.
As Ardo lambasts cryptocurrencies while forgetting that the country’s banking sector is recovering from a $230 billion money laundering scandal involving Danske, XRP volatility is low. in the last day the coin is down 0.3 percent and oscillating within Jan 6 and 7 bars.
Still, this is bullish because bears are yet to erase Jan 6 gains and trading above Dec 28 lows at 34 cents. Our last XRP/USD trade plan is valid, and unless there are satisfying breaks above 40 cents, traders are better off staying on the sidelines.
To highlight previous plans, any drop below 30 cents could trigger the next wave of bear pressure complementing the drain of Nov 2018.
XRP/USD is accumulating within a 6 cents range with caps at 40 cents on the upside and minor supports at 34 cents and later 30 cents. Despite this volatility tapering, bulls are in charge.
Therefore, gains above 40 cents should be at the back of high volumes exceeding those of Dec 24—123 million versus 54 million or even Sep 21—751 million versus 149 million.
All Charts Courtesy of Trading View–BitFinex
Disclaimer: Opinions are those of the author. Do your Research.