XRPUSD: Ripple Surges Straight into Fibonacci Resistance

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Written By: Alejandro Zambrano
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    Summary:
  • Ripple’s XRP is today’s biggest gainer of the top ten cryptocurrencies, as traders added to their long positions, but the upside is capped. Find out why.

Ripple’s XRP is today’s biggest gainer of the top ten cryptocurrency assets, as traders added to their long positions. Rippel’s price has now recovered almost 61.8% of the 32.75% slide from the September 18 high of $0.3268. Other cryptocurrencies such as Bitcoin (BTCUSD), and Bitcoin Cash (BCHUSD), are also higher but the moves remain corrective against the last few month’s declines.

As for Rippel (XRPUSD), today’s rise in price it not much more than a strong correction, but as other key crypto assets are getting ready to catch up it might lift XRPUSD even further, and the price might be able to reach the fourth Fibonacci correction level at $0.30.

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Tactically, I suspect traders that bought on the lows two weeks ago will book 50% of their long position at current levels and close the rest of the position at $0.30. As for bearish traders they will probably hold of with entering new positions until we reach $0.30, and they will probably use signs of BTCUSD topping out to confirm the price action in XRP/USD.

Written By: Alejandro Zambrano

Alejandro Zambrano combines extensive professional experience and a pragmatic attitude to trading, building clients’ understanding of the markets and the rationale behind investing. Zambrano was the Chief Market Strategist of the FCA regulated broker, Amana Capital. Prior to that, he was also the Head Analyst at FXCM’s London research desk. Interact with Alex via Twitter at @AlexFX00.

Published by
Written By: Alejandro Zambrano