XRP Price Analysis

Summary of key points:

  1. Market sentiment:

    • The increased talk of cryptocurrencies by ordinary people (“normies”) is seen as a negative sign, indicating the potential for them to become “exit liquidity” for large investors.

    • Expect panic selling by these new investors if prices start to fall.

  2. Technical Analysis of XRP:

    • A breakout of the symmetrical triangle above $2 is considered a strong positive signal.

    • Any price drop is expected to be temporary, as we are still in a bull market overall.

    • Buyers are expected to defend the $2 level strongly, but if it is broken, the next support is at $1.90, $1.50, $1.42, and possibly $1.10.

  3. Wave analysis:

    • The current move is considered a correction of the fourth wave according to the Elliott Wave Theory, with a possible retracement at points such as $1.90, around $1.42, or at a minimum $1.10.

    • There are doubts about the extension of the third wave, but we must be prepared for unexpected moves due to the possibility of market manipulation.

  4. Trading Strategy and Risks:

    • It is advisable to closely monitor the charts to identify reversal signals and take advantage of optimal entry points.

    • The lowest level the price is expected to reach is $1.10, with a high probability of breaking the $1.50 level.

Things to consider:

  • Fourth wave corrections:
    Wave 4 corrections are often difficult to trade, as they may take a sideways or sharp turn before resuming the upward movement of wave 5. Patience is essential here.

  • Market manipulation:
    XRP is considered a very unpredictable currency due to potential market manipulation, making it essential to place stop loss orders and manage risk well.

  • General market trends:
    XRP's movement could be significantly influenced by the performance of Bitcoin and the altcoin market in general.

Recommendations:

  • Be careful when considering entry at prices below $2, as the market may squeeze out traders with low confidence before a potential reversal occurs.

  • Make sure that support levels hold, or wait for strong reversal signals before making any investment decisions.

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