Ripple (XRP) Price Analysis: January 22, 2018

The entire cryptocurrency world is experiencing a much-anticipated market correction with prices across the cryptocurrency sphere trading down. Almost all the popular cryptocurrency daily price charts are showing price reversal patterns from all-time highs made over the last couple of months.

The cryptocurrency market is exhibiting classic signs of “follow the herd” mentality as traders that are taking profits (those at the front of the “herd”) are being followed by those traders that entered the market late, and are now having to cut their losses (those at the back of the “herd”). While all the “we told you so” media pundits that are reporting the “bursting of the bubble” are take their victory lap,  savvy investors (that don’t follow the “herd”) who have been patiently waiting for a favorable market entry point are now in a much better position to pull the trigger.

The exposure of the cryptocurrency market in the news has garnered the attention of many institutional and private investors. Many of these investors felt that they “missed the boat” on the cryptocurrency opportunity. This massive market correction may be seen as the time to enter the market and may spark another bull run on the cryptocurrencies that may again see new all-time highs.

Ripple (XRP) is in a great position to capitalize on the current market conditions. In terms of market capitalization, Ripple is now the third largest cryptocurrency with a $53.224 billion market cap.

While Bitcoin and Euthereum remain at the top of the market capitalization list, they are priced at $11662.00, and $1069.20 respectively, leaving room for a great deal of downside risk if the market continues on its slide. Ripple, on the other hand, is trading at a mere $1.37, with daily volume that typically ranks in the top five. At Ripples’ current price, there’s not near as much downside risk as Bitcoin or Ethereum.

Chart #1: Ripple Daily

From a technical analysis perspective, Ripple has just completed a head-and-shoulders price reversal pattern (as shown in Chart #1 above) for which it has retraced almost 78% of the price runup which started on December 11, 2017, to its all-time high of $3.32 on January 4, 2018. Price has bounced off of a resistance level at $.86 and has consolidated at$1.37 where it is currently trading.

We can conclude with some degree of confidence that cryptocurrencies are here to stay. That being said, with the completion of the head-and-shoulders reversal price pattern, along with the fact that Ripple doesn’t have much room for price to fall, puts it in a prime position for upside movement once the market correction cycle is completed. This puts Ripple is in a promising position to attract many of the new investors entering the market as a result of the discounted prices resulting from the market correction.

For those patient investors that have been patiently waiting for a favorable market entry point, this is it. We will be watching closely.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of coinmarketcap.com