XRP/USD Price Chart - Daily Timeframe
Markets

XRP/USD: Ripple Prices Double-Up as February Losses Evaporate

DailyFX.com -

Ripple prices have come full circle with the broad based rally in cryptocurrencies this week paring the early-February losses. The advance takes prices into monthly open resistance and while prices may be vulnerable here near-term the broader outlook remains constructive.

Ripple Daily Price Chart (Log)

XRP/USD Price Chart - Daily Timeframe

Technical Outlook: Ripple prices are up over 100% off the February lows with the advance now testing monthly open resistance at 1.1407 . An ascending pitchfork formation extending off the January lows keeps the focus higher while above near-term support at ~ 9646 where the 100-day moving average converges on the 50-line. Broader bullish invalidation remains steady at the 2018 low-day close at 7600 .

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Ripple 240min Price Chart (Log)

XRP/USD Price Chart - 240min Timeframe

Notes: A closer look at Ripple price action sees the cryptocurrency breaking above basic trendline resistance extending off the record highs late-last week with a pullback and defense of this slope further validating the near-term breakout. Interim resistance targets eyed at 1.2203 backed by the median-line / 61.8% extension at 1.2956 - a breach there would be needed to fuel the next leg higher in price with such a scenario targeting subsequent resistance objectives at 1.5457 backed closely by 1.6177 .

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Interim support rests with the 100-day moving average, currently at ~ 9646 backed closely by the 50-line. Ultimately a break below the 90 -handle would suggest a larger correction is underway targeting the 61.8% retracement at 8230 and the low-day close at 7600 .

Bottom line: The immediate advance looks a bit vulnerable here but the broader focus remains weighted to the topside while above the monthly / yearly low-day close. From a trading standpoint, I'll favor fading weakness into structural support OR buying a break and retest of the median-line (1.2956) as support for a move back towards the 1.6177.

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XRP/USD IG Client Sentiment

Ripple IG Client Sentiment
  • A summary of IG Client Sentiment shows traders are net-long XRP/USD- the ratio stands at +22.58 (95.8% of traders are long) - bearish reading
  • T raders remained net-long since Dec 25 th ; price has moved 55.5% lower since then
  • Long positions are 2.3% higher than yesterday and 0.5% lower from last week
  • Short positions are 20.3% lower than yesterday and 2.8% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Ripple prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger Ripple- bearish contrarian trading bias from a sentiment standpoint.

See how shifts in XRP/USD retail positioning are impacting trend- Click here to learn more about sentiment!

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- Written by Michael Boutros, Currency Strategist with DailyFX

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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