Ripple (XRP) Analysis: Longs Lose 50% in Two Months
Ripple Price, Analysis and Chart
- A tortuous grind lower with further losses expected.
- Retail remain heavily long XRP from much higher levels.
Ripple (XRP) – Losses Continue to Rack-Up
The third-largest crypto token by market capitalization continues to leak lower and changes hands at levels last seen nearly three months ago. After rallying back to around $0.90 - $0.95 in late-April/early-May, XRP has shed 50% of its value and now threatens weak support around $0.45. If this support breaks - which currently looks likely when observing recent momentum – XRP may well fall all the way back to the $0.20 area seen before the sharp December rally. The RSI indicator is nearing oversold territory which may stem losses in the near-term but recent price actions shows rebounds are being sold and prices then move lower.
And despite this heavy sell-off, retail investors continue to hold Ripple, according to the IG Client Sentiment. This indicatorshows clients remain heavily long XRP and have remained net-long since December 25 when Ripple traded near $2.49.This indicator shows the number of client’s net-long of XRP - not the volume of client holdings – and signals an extreme one-way positioning in the token.
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Ripple Price Chart Four Hour Time Frame (April 7 – June 27, 2018)
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What’s your Opinion on Ripple – Will the Dam Burst?
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.