Ripple is having a horrible 2019 against bitcoin. The Standard (Ripple) as known in the crypto community is down by over 66 percent against the leading cryptocurrency year-to-date. Ripple is so weak that it already posted seven consecutive red candles on the monthly chart. Unfortunately for the No. 3 cryptocurrency, it appears that its winter won’t be letting up anytime soon.
That’s according to an analyst who goes by the name of Livercoin on Twitter. The forex and cryptocurrency trader foresees the persistence of the bear market for Ripple in the coming weeks. According to Livercoin’s tweet, Ripple would revisit its historical support before launching a massive parabolic rally.
The 2019 bear market has driven Ripple into oversold conditions in both the weekly and daily time frames. Thus, it is not surprising to see someone calling for a relief bounce before the next leg down.
However, Livercoin’s prediction of a dead-cat bounce doesn’t stem from oversold conditions. The trader’s analysis appears to be based on the fractal that you can see on the left-hand side of the screen.
In trading, a fractal is a recurring geometric structure. Since technical analysis is the study of historical price action, successfully identifying fractals in a chart enables a trader to forecast future price action.
In Ripple’s case, the crypto token (XRP/BTC) rallied above 4,000 satoshis in November 2017 before plunging and finding stability around 1,500 satoshis in December 2017. That’s a drop of over 60 percent in less than a month. The trader expects the same price action to unfold in the coming weeks as the cryptocurrency appears to be generating a similar geometric structure.
The 60 percent nosedive predicted by Livercoin should inflict maximum pain to all retail investors. If Ripple trades around 1,500 satoshis, then it would be safe to assume that most retail investors have been shaken out. At that point, the market would be so depressed that virtually no one would dare to buy it.
That would be an awesome opportunity for a glorious pump.
Based on Livercoin’s fractal, Ripple would immediately skyrocket after hitting the historical support of 1,500 satoshis. The injection of capital would be so quick that many retail investors would be left on the sidelines.
Looking at the analyst’s chart, Ripple would likely ascend to 17,000 satoshis in a matter of days. The prediction sounds absurd, but if you’re trading cryptocurrencies for over a year, you’d know that anything’s possible.
If you think Livercoin’s fractal makes sense, the smart way to go about it would be to sell your positions as soon as Ripple rallies above 4,000 satoshis. If you don’t have any position at the moment, then it might be best to wait for Ripple to respect its historical support of 1,500 satoshis before placing buy orders. That way, you can minimize your risks while maximizing your profit potential.
Disclaimer: This article is intended for informational purposes only and should not be taken as investment advice.
Last modified: March 4, 2021 2:38 PM