Published
4 years ago on
May 29, 2019
Ripple (XRP) has once again faced strong rejection at its trend line resistance as investors remain confused whether to buy XRP/USD at current prices or not. Ripple (XRP) could be a hedge against Bitcoin (BTC) but it is also overbought at current prices. That being said, Ripple (XRP) has a history of making its independent moves at times and if the price breaks out from the descending triangle that could be the case once again. However, so far the probability of that happening remains very low. To the very contrary, if XRP/USD ends up falling back to the support at $0.28, it is likely to break it and fall further towards $0.147 by the end of the year. This decline is going to be very fast and easy as there are a lot of stops just below the $0.28 support.
Market makers love to run stops. This is how they make sure the casino always wins. They liquidated most retail bears during the recent pumps and when that party is over, they are going to start feasting on the bulls next. When one side becomes too complacent, it becomes a soft target for the whales and they cannot resist taking their money. Looking at this chart for XRP/USD, anyone with an unbiased mind would be forced to think what makes anyone think the bull market has begun. There is absolutely no reason to believe that when the price has failed to break past a critical trend line and it has rallied in an artificial manner. As the price retraces from this trend line resistance, we are going to see most of these euphoric bulls try to cash out but it might be too late as they whales would dump on them before they have the chance to unload their bags.
Ripple (XRP) is in even bigger trouble against Bitcoin (BTC) as the price is all set to break a key support should Bitcoin (BTC) take a turn for the downside in the near future. We have seen altcoins fall harder than Bitcoin (BTC) during most downtrends and if BTC/USD starts to fall again, we will most likely see XRP/BTC break this key support and decline to levels not seen before the beginning of the last bull run in 2017. It is interesting to see how divided people are at this moment in the market. There is one group of traders and analysts that consider the bear market over and think we are already in the bull market.
In other words they expect the price to head straight from bear to bull mode. Anyway, there another group of people, a very small group, that thinks we are yet to see maximum pain in this market. There is no denying that XRP/BTC has already declined too much and to see it to fall further would be somewhat unreasonable. However, we have seen XRP/BTC decline despite trading in oversold conditions. When Bitcoin (BTC) takes a fall, the rest of the market falls with it and how oversold or overbought they are at that moment becomes less significant.
