2018-11-2 19:19 |
Traders who took long positions in Ripple’s XRP on Monday’s drop would have capitalized on the price action bouncing from the bottom of its trading range. Does that mean they made the right decision?
XRP entered into a trading range in mid-October after appreciating on the news of 0x Project listing to Coinbase Pro. The appreciation was driven by a renewed optimism of Ripple’s XRP having a future listing to Coinbase. Listing to Coinbase has historically resulted in significant price increases for coins as it opens the projects up to key sources of capital. After the initial increase, XRP entered a trading range from around $0.42 to $0.48.
Altcoins mirrored Bitcoins drop on Monday and XRP is no different. As it approached the bottom of the range around $0.42, traders who took long positions would have capitalized so far. Price currently trades around $0.46 and may very well continue appreciating closer to the top of the trading range. It is currently recording its fourth consecutive gain.
XRP Daily Range Chart – Source: Tradingview.comHowever, with a key point of resistance outside the top of the range at $0.49, it may have been a poor trade to make. At the moment, there may be a lot more downside risk to upside potential for XRP. A break outside of the range to the upside would likely be met with some resistance and potentially result in a reversal. However, prior to the listing of 0x Project, XRP priced in a low of $0.29 so traders are willing to value the project at these low levels.
A lot likely depends on the market leader Bitcoin. With Bitcoin representing over 53% of the market cap, a significant bullish movement would likely make the resistance above the XRP range irrelevant. Bitcoin is currently trading within a triangle pattern which has been forming since March. A bullish or bearish breakout from this pattern seems equally likely currently. There is also the scenario that Bitcoin continues to trade on low volume in a range as it recently has been.
Bitcoin Daily Chart – Source: Tradingview.com Key Takeaways: XRP has been trading in a range from $0.42 to $0.48 since mid-October. XRP traders who took long positions Monday’sondays drop would have capitalized as the price has increased since. Key resistance outside the range at $0.49. Bitcoins movements will likely play an important role in the future movements of XRP. DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Bullish XRP Traders Capitalized This Week was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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