XRP: weekly market analysis (from 16 January to 22 January 2020 on BTC / XRP pair)
BTC / XRP the bulls seem charged, but it is better to wait for a break
Waiting for the new candle of the month to open, the 30D chart is there to remind us that the last useful support, the one that gave life to the powerful pump of December 2017, is always in the 1180 satoshi area, well below the price levels current; this is one of the main reasons why many advise against attempting operations on ripples, the fear is that this currency is inevitably heading towards that historical minimum.
The 1W garff only confirms this impression, with the price now steadily under the clouds, however a large bullish divergence, which began to form on the MACD starting from last August, keeps the hopes of the XRP supporter community alive.
We come to the 1D chart, which instead shows us how during this early 2020 ripple has already attempted the assault on the cloud three times, but has been systematically rejected by the bears.
A quick glance at the exponential moving averages shows us, however, that for a little less than a week the price has been in a compression phase, dancing between the EMA20 and the EMA50, so it seems likely that in the end it will be able to jump and go to test the EMA100.
Just the exponential moving average of 100 periods is currently in the 2900 satoshi area and this is precisely the reason why I recommend to wait for a day's closing in the 3000 satoshi area before starting to take even vaguely into consideration the possibility to go long on XRP.
Weekly forecast
Although you remain convinced that there will be a test of the EMA100 probably just over the next seven days, my advice is to wait for the 3000 satoshi quota to break before opening a position on XRP; the reason why I am convinced that this currency will continue to rise and that it could even be in a reversal phase does not depend so much on what the graphs show us but on a factor that few have yet started to talk about.
The dominance of bitcoin (ie the value of the capitalization of BTC compared to the overall value of the whole sector) has finally started to decline; just yesterday, in fact, we had a new low lower than the previous one.
This is clearly a good sign for the alt and frequently in the past it has coincided with the beginning of an altseason; however this is not enough to catapult the first altcoin that happens to us appears and, even if at this moment the price of XRP is decidedly tempting (compared to the last historical maximum in zone $ 3), it will still be worth waiting for a break of the last maximum to avoid taking unnecessary risks.
Please note: this post is not intended to provide in any way financial advice related to how to invest your money but it is for educational purposes only.
