Ripple (XRP)’s Fate Hangs In The Balance As Price Reaches Key Decision Point
Ripple (XRP) is about to make a big move that will determine its direction for the weeks and months to come. The weekly chart for XRP/USD shows that this is one of the most important decisions that Ripple (XRP) will make since 2018. If the price ends up breaking above the descending triangle that it is currently trading in, we would still need to wait for confirmation to make sure that this is a genuine breakout with follow through. However, if it fails to do that and breaks straight below the key support of $0.21, we would be looking at a decline down to the $0.14 level. There is a good chance of the price remaining rangebound between those two levels for a long time before the next major decision.
However, that being said, now that Bitcoin (BTC) is at risk of capitulating and completing its correction before the upcoming halving, it may be a good idea not to over expose your account to unnecessary risk. Let’s face it, the risks far outweigh the rewards here. If XRP/USD crashes here and declines below $0.14, it would lead to an absolute bloodbath as there is no strong support in the way to stop it from declining much lower. Ripple (XRP) is once again the face of controversy at a time when it is about to make a big decision. Brag Garlinhouse, the CEO of Ripple recently said that Ripple (the company) cannot control the price of its cryptocurrency, XRP but many analysts and traders would argue otherwise.
The weekly chart for XRP/BTC shows that Ripple (XRP) is about to make an even more important decision against Bitcoin (BTC) than against the US Dollar (USD). This would be its most important decision since 2017. The descending triangle that we see on the weekly chart for XRP/BTC will now have to be broken to either side. If it is broken to the upside, with follow through, we would be inclined to believe that this was the end of the bear market and Ripple (XRP) is about to begin a new bullish cycle.
However, if Ripple (XRP) crashes below this descending triangle, we would consider it not just to be a capitulation phase but potentially the beginning of another bear trend that could pull it much lower this year. Despite the gloomy outlook of financial markets worldwide, crypto investors remain more optimistic than ever about tokens that are not even backed by any real business. Even penny stocks give you equity in a company so regardless of how new or good or bad the company is, you have a stake in the company. XRP or other similar token on the other hand are just speculative vehicles that operate on the greater fool theory meaning that someone sells it to you and you hope you can sell it to someone for a higher price because you don’t want to keep it. There is no income or dividends to receive from it.
Published at Mon, 13 Jan 2020 22:01:24 +0000