Cryptocurrency focused on payments Xrp is broken but not, while the prospects for Dogecoin (DOGE) seems dark, based on an analysis of Fibonacci’s retracement levels.
XRP reached a peak of $ 3.40 in mid-January and has since entered down a downward trend, the price down 25% this month at $ 2.28, according to tradingView and Coindesk data.
Although the sale was steep, it only corresponds to a Fibonacci retracement of 38.2% of the rally which started at least November 4 of 49.5 cents until the highest of January 16.40. A retracement is a drop in the main trend.
It is a new positive for XRP bulls, because this level, as well as the ratios of 50% and 61.8%, indicate potential areas for the price to resume its previous trend, according to the CME explanator.
Trends often retreat to these levels before launching greater rallies. This means that XRP bulls have reasons to be optimistic about the potential gains to come.
In addition, there has been a positive news flow concerning XRP recently. Monday, Etf.com said The Brazil securities regulator had recorded the first XRP Exchange Fund (ETF) spot while the Hashdex Nasdaq XRP fund has entered a pre-operational phase with the Brazil Cisson de Valores Mobiliários (CVM).
American regulators also examine the applications of ETF XRP. Potential approval could accelerate the institutional demand of XRP if the absorption of Bitcoin (BTC) and ether (Ethn) FNBs are any guide.
The Fibonacci series includes the addition of the two previous numbers to find the following number. The sequence, which has concerned mathematicians and scientists for centuries, occurs as follows: 1, 3, 5, 8, 13, 21, 34, 55, etc. The report of any number to the next number is close to 0.618 and if you divide any number into the sequence by the two spaces on the right, you get 38.2.
Traders use these ratios and the 50% level to predict how far an asset can retrace the main trend, in the case of XRP, the Bull Run.
This is another story for Dogecoin because a main trend is considered to be finished when a retraction exceeds the level of 61.8%.
The largest cryptocurrency of memes in the world per market value has dropped below 21 cents, traced more than 70% of the rally marked by October nearly 10 cents and a maximum of 48.4 cents in December.
