Payments-focused cryptocurrency XRP is down but not out, while the prospects of Dogecoin (DOGE) occur bleak, based on an analysis of Fibonacci Retracement levels.
The XRP reached a highlight of $ 3.40 in mid -January and has since entered a downward tend, with the price dropped 25% this month to $ 2.28, according to data from TradingView and Coindesk.
While the sale has been steep, this is only a 38.2% fibonacci retacement of the rally, which started on November 4 at 49.5 cents through 16 January high at $ 3.40. A retracement is a decrease from the most important trend.
This is positive news for the XRP Bulls as this level, along with 50% and 61.8% conditions, indicates potential areas for the cost of resuming its previous trend, according to CME’s explains.
Trends often withdraw to these levels before initiating larger events. This means that the XRP bull has reason to be optimistic in terms of potential gains ahead.
In addition, there has recently been a positive news stream regarding XRP. On Monday, Etf.com said Brazil’s securities regulator had registered the first place XRP Exchange-Traded Fund (ETF) when Hashdex Nasdaq XRP Foundation entered a so-called pre-operative phase with Brasils Comissão de Valores Mobiliários (CVM).
US regulators also review applications for XRP ETFs. A potential approval can accelerate the institutional demand for XRP if the absorption of Bitcoin (BTC) and Ether (ETH) ETFs are any guide.
The Fibonacci series includes the addition of the previous two numbers to find the next number. The sequence that has been of interest to mathematicians and scientists for centuries occurs as follows: 1, 3, 5, 8, 13, 21, 34, 55, etc. The ratio of any number and the next higher number is close at 0.618, and if you share a number in the sequence with one two spaces to the right, you get 38.2.
Dealers use these conditions and the 50% level to predict how far an asset can withdraw the primary trend, in XRP’s case, Bull Run.
It is another story for Dogecoin because a primary trend is considered to be completed when a retracement exceeds the 61.8% level.
The world’s largest meme cryptocurrency by market value has fallen below 21 cents, withdrawing more than 70% of the rally marked in October lower near 10 cents and a high of 48.4 cents in December.
