By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On Friday, November 22nd, the XRP keeps declining, trading at the minimum since September 30th — $0.2395.
On H4, XRP/USD demonstrates the development of a downtrend after a test of the long-term resistance level. The aim of the current trend is the fractal minimum of $0.2100. We should especially note the dynamics of the MACD which is forming a convergence. In our case, it signifies a slow-down of the trend and a decline to the target level. Speaking about a pullback, it should be signaled by a breakout of the resistance line, which is currently at $0.2495. The breakout of the resistance line may let the quotations rise to the broken support line which has become the mid-term resistance level. The aim is at $0.2868.
On H1 of the chart and the Stochastic, there is a convergence forming, which again signals a pullback. Meanwhile, its too early to say that the impulse for a decline has subsided. The local goal of the decline is at the support line near $0.2200.
According to some sources, about 2.2 billion XRP tokens that were not meant for selling may get to the market. If this happens, the XRP rate will fall more than significantly.
In an investigation open to the public, it is mentioned that Ripple somehow manages to hide a huge number of tokens blocked according to long-term agreements. The authors think that such actions are not entirely legal or right, as if Ripple were securing the coin from slumping, keeping those tokens. But if and when the constraints fall, the price of the token will shrink.
Also, the investigation reveals that at some moments Ripple used the fund as a tax haven for affiliate companies. At the same time, the company does not give anything for real charity.
These statements are hard to check, they require detailed analysis of all the nuances. However, even now the information can seriously damage the business reputation of Ripple and the price of the token.
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.