Bearish on XRP: Target Price $1.49 - $1.00
2024-12-12
Category: None

I have sold out of my XRP positions, while everyone is bullish on XR, I see genuine concerns. The momentum indicators show strong bearish potential, as key indicators across time frames signal declining momentum. The weekly chart highlights overbought conditions and weakening bullish pressure, while the daily and intraday signals suggest a likely rejection at resistance. This setup presents an opportunity to target lower price levels with a structured trade plan.

 Higher Time Frame: Weekly 
 
 RSI: Overbought at 84, indicating prices are high. Declining momentum suggests fewer buyers are interested at these levels.
 Stochastic RSI: Overbought at 93 with a bearish crossover (K line crossing below D line), reinforcing declining momentum.
 Rate of Change (ROC): Extremely high at 360, the highest since 2018, but now in decline. This further supports bearish momentum.
 

The weekly time frame points to a clear bearish bias. Momentum is fading, and the correction likely hasn't played out fully.

 Lower Time Frame: Daily 
 
 RSI: Moderating at 64, suggesting prices are more appealing but still in a vulnerable position given the broader context.
 Stochastic RSI: Oversold, hinting at the potential for upward momentum. However, this is occurring within a descending channel, and prices are nearing resistance, increasing the likelihood of a rejection.
 

While the daily chart shows stabilization, the overall bearish momentum from the weekly suggests that any upside may be short-lived.

 Intraday View: 4-Hour 
Stochastic RSI: Bearish crossover, aligning with the descending channel resistance on the daily chart.

Short-term momentum supports the view of rejection at resistance and a move to the lower part of the channel.

 Summary 
I believe the correction is still playing out, and the descending channel will eventually break to the downside my price targets are -

Target 1: 618 Fib Level / $1.49
Target 2: 786 Fib Level / $1.00

 Risk Factors 
Monitor momentum indicators (RSI, Stochastic RSI, ROC) for shifts.
Keep an eye on volume and broader market conditions (e.g., Bitcoin dominance and sentiment).

