Is Ripple Heading Lower Looks Like It

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Is Ripple Heading Lower? Looks Like It

The Ripple Chart Does Not Look Good

I was just doing my daily perusal of the crypto market when I stumbled across an interesting headline. It said Ripple had just scored a major investment and the XRP coin was up 5% because of it. I immediately went to the chart and you know what I found? Not a coin up 5% that’s for sure, and not one that looks anything close to be bullish.

Ripple, The News

Ripple, a California-based cryptocurrency startup, announced it had raised $200 million in a round of Series C funding. The money comes from global investment firm Tetragon among others and is intended to help Ripple as it scales. Ripple’s CEO says the funding proves institutional investors see the utility and value of Ripple. Whether or not that is true in a broad-sense is yet to be seen.

Brad Garlinghouse, CEO of Ripple, said this…

“We are in a strong financial position to execute against our vision. As others in the blockchain space have slowed their growth or even shut down, we have accelerated our momentum and industry leadership throughout 2020.”

In the blog post, Ripple revealed that its client-base was growing at an exponential rate. Much of the funding will be used to expand the worldwide team. The outlook for 2020 is robust, the company is expecting another 30-40% in customer growth, so the move seems like a good one.

Ripple, The Technical Analysis

With Ripple doing so well I expected to see this chart ripping higher. Holding steady at least, not what I found, not a downtrend. Yes, XRP surged 5% on the news but that’s not much for crypto. A look at the charts shows the move barely made it to the top of a near-term trading range. What I find alarming, at least in the bullish sense, is that XRP/USD is in a downtrend. The failed break-out last June resulted in a sharp drop in prices, the drop in prices has fallen below support, and now the price action looks like it is setting up for another move lower.

Price action over the past is bearish and worse, it looks like a bearish flag pattern. The flag pattern is a continuation signal that, if confirmed, will take prices down to $0.16 real fast. The risk is that the stochastic is showing a bullish crossover but let me say this: within a downtrend such a set up is a better time to sell than buy. In either case, I’d wait for a confirming signal before trading. In the bearish sense, a move to new lows would be the signal. In the bullish sense, a move to new highs (above the top of the near-term range), could be a signal but I’d be wary. Resistance at the $0.20 level could be very strong.

Litecoin, On The Move And Heading Lower

Litecoin Dips, Slides Lower In Top 10 Rankings

Litecoin currently sits at the 8 th position on the crypto top-10 by market cap, with a total dollar market value of $1.8 billion, followed by TRON (TRX) with $1.6 billion. As most other coins, Litecoin is trading bearish, having lost almost 11% in the last 7 days and more than 3% in the last 24 hours. Due to a decline in popularity and confusion about the benefits of this coin, relative to the likes of Ripple, Bitcoin Cash, and now Bitcoin SV, it looks likely we’ll see Litecoin to continue to fall in the rankings.

In a recent message to the market Charlie Lee, found of Litecoin, argued that cryptocurrencies had to be vulnerable to a 51% attack else they’d be centralized, not de-centralized. The claim may be true but it does nothing to reassure owners and users of the system their money and value is safe.

Chart Analysis – LTC/USD

After two attempts to move above the key level at $40, Litecoin dropped like a stone and is currently trading around $30, testing a bullish trend line and approaching the support at $29. This support is not expected to hold and could lead to a serious decline in Litecoin’s value. If you are thinking about going long this token you may want to wait.

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Given the bearish price action seen over the last few weeks, and the fact that price is trading below the 200 period Exponential Moving Average on a four hour chart, the chances of a break of 29 support are high. If this happens, we will likely see a touch of the next level, located at 27. For now volatility is relatively low but a break of support would probably change that, giving a clearer bias. The risk to this outlook is passage of US regulation which is not expected anytime soon.

Support zone: bullish trend line and 29 level

Resistance zone: 200 EMA (4 hour chart)

Most likely scenario: break of 29, en route to 27 – 25

Alternate scenario: choppy action between 29 and the 200 EMA

Bitcoin Technical Analysis: BTC/USD looks like it could break lower again

BTC/USD Hourly Chart

Looking at the 1-hour BTC/USD chart below you can see the trendline has broken and been retested.

Overall this is a rejection pattern and could indicate that the price is heading lower.

Now 7,428.50 is the low that needs to be taken out for the bears to assert their dominance.

The volume pressure looks clearly like the sell-side are winning the battle at present.

On the topside the main resistance holds at 7,933.40 and we are pretty far from there at present.

Additional Levels

BTC/USD

Overview
Today last price 7426.57
Today Daily Change -95.13
Today Daily Change % -1.26
Today daily open 7521.7
Trends
Daily SMA20 7453.27
Daily SMA50 8200.62
Daily SMA100 8741.52
Daily SMA200 9381.18
Levels
Previous Daily High 7576.77
Previous Daily Low 7390.42
Previous Weekly High 7770.78
Previous Weekly Low 7082.55
Previous Monthly High 9580.19
Previous Monthly Low 6526.82
Daily Fibonacci 38.2% 7505.58
Daily Fibonacci 61.8% 7461.61
Daily Pivot Point S1 7415.83
Daily Pivot Point S2 7309.95
Daily Pivot Point S3 7229.48
Daily Pivot Point R1 7602.17
Daily Pivot Point R2 7682.64
Daily Pivot Point R3 7788.52

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