By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On Tuesday, December 3rd is trying to restore after the previous selling. It is generally trading at $0.2203.
On D1 of XRP/USD, the cryptocurrency may seem at the bottom. However, this impression might be false, and the decline may continue. The aim of the downtrend may be at the psychologically important level of $0.1000. On the MACD, there is a convergence forming, which means the decline is slowing down. The end of the decline will be signaled by a breakout of the resistance line and securing above it near $0.2700.
On H4, after a convergence on the Stochastic, the technical picture may be interpreted as a correction after the last wave of declining. By now, the pullback has reached just 23.6% Fibo but may continue to 38.2% ($0.2440), 50.0% ($0.2575), and 61.8% ($0.2710). The correctional phase might end with a Black Cross in the overbought area of the Stochastic. The support is at the minimum of $0.2002.
According to Whale Alert, Ripple unblocked around 1 billion tokens at the end of November; the tokens are ready for selling and may get to the market at any moment. Bearing in mind that the investors may dislike the increase of the number of the tokens traded, the market may start selling. This will provoke the decline of the XRP price.
In December 2017, 55 billion of the Ripple tokens were frozen. This was done for the investors not to crush the crypto rate, selling the previously bought tokens. Each month, the company defrosts about 1 billion tokens, and is the market is positive, this goes by unnoticed. However, if the market is negative as now, this may hit the quotations.
As they say in TraderSZ, the XRP may slump substantially in the midterm. However, the only factor they raise for it the technical one.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.