Ripple Price Analysis: XRP Chart Set-Up Remains Negative
Ripple Price, Analysis and Chart
- Technical background remains weak with lower prices likely in the days ahead.
- The question of Ripple’s regulatory classification remains unanswered.
Ripple Remains Weak and Further Losses are Likely
Ripple CEO Brad Garlinghouse recent defense of XRP and his explanation of why it should not be classified as a security has done little to halt the recent decline in the token which has lost nearly 30% in the last month alone. Speaking at the CB Insights' Future of Fintech conference on Thursday, Garlinghouse highlighted that buying XRP does not give you a share in Ripple, one of the claims that the SEC is looking, and therefore XRP should not be classified as a security. This binary decision will ultimately drive the value of XRP, but in the meantime the technical set-up of the token remains negative with recent support under pressure.
Retail continue to remain heavily long of XRP with IG Client Sentimentdata showing 96.6% of traders are net-long with the ratio of traders long to short at 28.24 to 1. Recent positional changes may have negated are heavily bearish contrarian outlook in the short-term but clients remain long in a downtrend.
On the four-hour chart the recent $0.505 low looms large and a clear break below opens the way to another 10% fall to April’s low of $0.455 before the December spike low located at $0.405. And a complete retrace of the December 7 – January rally all the way down to the $0.20 are cannot be discounted. XRP trades below all three moving averages while the RSI indicator trend lower.
Ripple Price Chart Four Hour Time Frame (May 19 – June 22, 2018)
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What’s your opinion on Ripple? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at firstname.lastname@example.org.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.