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Ripple (XRP) Price Technical Analysis: Market Stabilizing
News for the cryptocurrency market, in general, seems bleak. Headline after headline seems to paint a miserable outlook for the crypto market.
Lest not we forget that Bitcoin hit its all-time high of $19,666 on December 17, 2017. That was ONLY about 5-weeks ago. At that time, the media, and most people familiar with the crypto market could not believe the gains that it was making. And for the most part, most people had no idea what the cryptocurrency market was.
Now that Bitcoin is back near $10,000, the media hysteria is the exact inverse of a month ago. Market sentiment in the cryptocurrency market is very fluid, and can change “overnight.”
As the cryptocurrency market slump continues, Ripple is beginning to show early signs stabilizing. Chart #1 below, the daily price bar for January 23rd closed slightly up to $1.34366 with both a higher high and a higher low than the prior day. Moreover, the day’s high briefly went above the 9-day moving average after testing a support level at $1.17709, as indicated on the daily chart.
Chart #1: Ripple Daily
Chart #2 shows a 15-minute chart with volume and momentum. The support level at $1.17709 shown in purple was tested three times. The third time was followed by an upward price move to $1.36570.
More importantly, the move was accompanied by a surge in volume, and an increase in momentum, as displayed in the chart. By mid-day, price retraced to $1.17889 approaching the support level again, and then made another upward move to the day’s high of $1.44653.
This second upward move was also accompanied by momentum and even more volume. Ripple is beginning to show indication of hitting a bottom.
Chart #2: Ripple 15-Minute
For the savvy investors and traders, dips in markets are not something to panic about. Quite the contrary, a price dip to an investor is synonymous with a “sale” to a compulsive shopper.
The key is to catch the prices at their lowest. When markets seem at their worst, according to the market media pundits, this is akin to “black-Friday” for savvy investors (refers to the first shopping day of the holiday season).
The one sure fact we can come away with is that the cryptocurrency market is very “unconventional,” and things happen “very , VERY, FAST!” It took Bitcoin 15-days to reach its all-time high of $19,666 from where it was trading at the same price as it is trading now at $10,730.
What will we be saying a month or two from now?
Difficult to predict.
But the one thing we traders/investors don’t want to say is that we “missed out on an opportunity.” For those that don’t have positions in cryptocurrencies now, this significant market dip is an opportunity to NOT get into the crypto market at the high.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of coinmarketcap.com