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Ripple (XRP): A Sudden Drop and Uncertain Outlook

Ripple: This is VERY BAD For XRP!
Ripple: This is VERY BAD For XRP!

Introduction

In this video, JB delves into the recent price action of XRP and explore the potential implications for its future trajectory.

Unusual XRP Candle

XRP experienced a dramatic 10% drop within just a few hours, raising concerns among investors. JB from Cheeky Crypto highlights the unusual XRP candle and emphasizes the importance of analyzing market structures to understand the underlying dynamics.

Market Pullback and XRP’s Position

The market pullback presents opportunities for strategic positioning, but the focus remains on the unique candle and its potential implications.

Completed C-wave and A-wave High Significance

Analyzing previous moves, JB identifies a completed C-wave, underscoring the importance of surpassing the A-wave high.

Potential Scenarios for XRP

XRP’s sharp drop from 63.7 to 57.3 suggests the beginning of a new downside structure. Two potential scenarios are discussed:

  1. A push towards 65-72 cents
  2. A drop below 57.28 cents, potentially leading to sub-50 cent levels

Lower Time Frames Analysis

JB examines lower time frames, noting a lack of clear structure in the recent 10.86% drop within one hour. Stochastic indicators suggest a potential impulsive move to the downside, but detailed structures remain unclear.

Daily Chart Analysis

Daily chart analysis reveals bearish signs, with XRP testing key EMA and SMA levels. A potential target range of 49-46 cents is identified.

Weekly Chart and Momentum

The weekly chart indicates a continuing downward trend for XRP, with stochastic momentum still favoring the downside.

Liquidation Data and Anomalies

Liquidation data shows nearly $5 million liquidated in the last 24 hours, with OKX responsible for a significant portion. JB expresses skepticism about the 50/50 split in liquidations during a large price drop, calling attention to potential anomalies.

Conclusion and Trading Strategy

XRP is expected to head towards 49-46 cents. Traders are advised to exercise caution and employ tight stop-loss strategies.

Engagement

Disclaimer

This article is for informational purposes only and should not be considered financial advice. Please do your own research before making any investment decisions.

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