Ripple (XRP): The Big Short or Not
XRP is the native token used in Ripple’s Blockchain, and it is one of the top ten large-cap, aka Blue Chip of the Altcoins. It is always a good idea to keep Blue Chip coins in your portfolio to make it more balanced.
Price Analysis of XRP/USD:
Ripple is currently hanging by a thin thread, as it is currently trading at $0.261, and at this point in time, XRP/USD price completely depends on the mercy of BTC/USD.
BTC/USD is currently trading at $8470, which is 61.8% retracement at the Fibonacci Retracement tool. Thus, if BTC bounces from here then we can expect the XRP/USD completing its Inverse Head and Shoulder pattern and can reach $0.30 from the current price of $0.261. If BTC/USD retraces further then expect the XRP/USD to go down further and completely invalidating Inverse Head and Shoulder pattern here. Buyers are hesitant at this moment, and they are waiting for the King, aka Bitcoin, to make its move in either direction.
Ichimoku Kinko Hyo pattern is also painting a not so rosy picture here for XRP/USD on 1 day time Frame as Prices have fallen below Kumo, and there is Bearish TK cross (Tenkan Sen and Kijun Sen), although this TK cross (area is shown under oval shape in the below chart) will be considered a weak signal as it happened above Kumo. Chikou Span is below the Prices and Kumo too. This might be a short-term downtrend as Senkou Span A cuts above Senkou Span B, and thus, Kumo paints green area for the upcoming days.
Further analyzing Simple Moving Averages (9 days, 21 days, 49 days, and 200 days) it is evident the Prices of XRP against USD have fallen below 9 days SMA, 21 days SMA, 49 days SMA, 99 say SMA and 200 days SMA. Meanwhile, Stoch RSI is indicating XRP, which has been oversold, and one can expect a relief bounce from here completing Inverse Head and Shoulder pattern provided BTC/USD does not make a sharp move for few more days.
Conclusion: Ripple is at a very important pivotal point here as it can bounce from the current price of $0.27 and can reach $0.30; it can test the 200 days SMA (Simple Moving Average) in coming days, thus completing Inverse Head and Shoulder pattern. But there is a catch as BTC/USD is hovering at 61.8% Fib retracement which is considered as a Golden Pocket by many Traders, if BTC bounces from here we can see a relief pump for XRP prices as well, otherwise get ready to make a big short trade as this whole setup will be invalidated by the King aka Bitcoin. To know about the XRP price today you can check on our price page with the live price chart.
Long story short, Shorting opportunity is there for XRP coin if BTC/USD prices fall below 61.8% Fib, or else Ripple will have a relief pump if BTC/USD bounces from this Golden Pocket area.