The XRP cryptocurrency focused on payments is decreasing but not, while the Dogecoin (Dogeco) perspectives seem dark, based on an analysis of the Fibonacci trace 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 retracement of fibonacci of 38.2% of the rally which started at least of November 4 of 49.5 cents until January 16 of 3, $ 40. A retracement is a drop in the main trend.
This 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. On Monday, ETF.com said that the Brazil securities regulator had recorded the first XRP (ETF) stock market fund, while the Hashdex Nasdaq XRP fund has entered a preoperational phase with Camisão de Valuores Mobiliários du Brazil (CVM) .
American regulators also examine the applications of ETF XRP. Potential approval could accelerate the institutional demand of XRP if the absorption of Bitcoin ETF (BTC) and Ether (ETH) is a 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.
