XRP Price Analysis–Oct 31
Even with an increase in XRP institutional demand and Ripple drive to increase investment avenues, XRP is finding strong resistance at around the 50 cents market. Recent losses could be damping but all depends on how prices react today at around the main support previous resistance level at 40 cents.
Latest Ripple News
Despite the market wide XRP/USD price correction, the market fundamentals are vibrant. In fact, they are so vibrant many investors are expecting XRP to moon sling to $589 in the next five years. But before that, there should be serious money being funneled to XRP as a top-tier investment asset and there are hints pointing to that. Recent Q3 XRP Market Report showed that XRP through its subsidiary XRP II sold 4.5 times more XRP to institutions than in Q2.
All things constant, this is massive of XRP. Though we didn’t see this demand affect price other than towards the end of Sep, the accumulation in the weekly chart could be pointers of pent-up demand as traders amass XRP over the counter in readiness of the next supper rally reversing 2018 losses. And encouragingly, it won’t take much before that happens.
Cory Johnson the hype master at Ripple have connections with the Trump administration and the recent hire and promotion of Amir Sarhangi from Google as VP Product is an indicator that Ripple Inc is after top talent.
Besides, traditional corporations are beginning to realize that DLT companies are here to stay and hold lots of potential. Aside from their human resource ramp up, Ripple is also working with regulators across the world and actively promoting the use of XRP at different exchanges.
XRP/USD Price Analysis
Even if the market is in the middle of a short-term correction, losses are mild. It’s down 2.4 percent in the last week and despite all that XRP/USD is trending inside week ending Oct 22 high low. That is positive. Therefore, in line with our previous trade plans, we recommend patience for conservative traders until after there are solid gains above the 50 percent Fibonacci retracement level at around 55 cents.
Concurrently, losses below 35 cents-40 cents support levels marked by the 78.6 percent Fibonacci correction mark yanks us back to neutral as sellers step up momentum eyeing for 25 cents for a 100 percent reversal of week ending Sep 23 gains.
Before then, we recommend patience with an optimistic outlook with the knowledge that XRP/USD is already down +85 percent from 2017 highs. Odds are high volume drops are but ecstatic losses marking the end of a bear trend providing an opportunity for savvy traders to add their longs on every dip.
Technically, XRP/USD prices are all over in lower time frames. First, though buyers are in charge in line with late Sep price movements, the follow through is yet to confirm that rally and in fact, we have two counter trends of Oct 11 and 15 further adding entropy.
Moving on, we shall not recommend buys on dips like it has been the case in previous trade plans because of risk-reward considerations caused by Oct 29 losses. But in case there is a drop below 40 cents, risk off and aggressive type of traders can trade a bear break out pattern with stops at 45 cents and first targets at 25 cents.
Conversely, surges above 55 cents shall trigger a wave of bull pressure eyeing 80 cents and later $1.65 as laid out in our last XRP/USD trade plan.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.