Current trend
The XRP/USD pair has been consolidating in the 0.6300-0.5800 range for the second week and cannot yet start an upward movement, despite a number of positive news for Ripple.
Last week, the company's management announced the repurchase of Series C shares in the amount of 200M dollars, released to the market back in December 2019 to attract investment. This increased Ripple's worth to 15B dollars. It should be noted that the head of the company, Brad Garlinghouse, assessed the past year as the most successful in financial terms. In addition, earlier, Ripple announced a partnership agreement with the British payment company Modulr Finance, which should facilitate entry into the UK financial market. These news could not seriously support XRP, which continues to be under pressure within the framework of the general market trend. Investors expect further tightening of monetary policy in the USA and weakening of the positions of alternative assets, as well as the publication in February of the American state strategy on cryptocurrencies. The document will address economic, regulatory and other issues related to digital assets. Most likely, new forms of regulation of the digital sector in the USA will also be indicated.
Support and resistance
If the price is fixed below 0.5800, the decline in quotes will be able to continue to 0.4883 (Murray [1/8]) and 0.3906 (Murray [0/8]). The key level for the "bulls" seems to be 0.6600 (center line of the Bollinger Bands). In case of its breakout, the price will be able to reach 0.7812 (Murray [4/8]). The indicators do not give a single signal: the downward reversal of the Bollinger Bands and the serious volumes of the MACD histogram in the negative zone point out the continuation of the downward trend, but the upward reversal of Stochastic does not exclude a corrective growth.
Resistance levels: 0.6600, 0.7500, 0.7812.
Support levels: 0.5800, 0.4883, 0.3906.
Trading tips
Short positions are relevant below the level of 0.5800 with targets at 0.4883, 0.3906. Stop-loss – 0.6500. Implementation period: 5-7 days.
Long positions may be opened from the level of 0.6600 with targets at 0.7500, 0.7812. Stop-loss – 0.5900.
Timeframe: Weekly
Recommendation: SELL STOP
Entry point: 0.5785
Take Profit: 0.4883, 0.3906
Stop Loss: 0.6500
Key levels: 0.3906, 0.4883, 0.5800, 0.6600, 0.7500, 0.781
Alternative scenario
Recommendation: BUY STOP
Entry point: 0.6620
Take Profit: 0.7500, 0.7812
Stop Loss: 0.5900
Key levels: 0.3906, 0.4883, 0.5800, 0.6600, 0.7500, 0.781
