Pseudonymous crypto trader Altcoin Sherpa tells his 194,400 Twitter followers that he is picking a support level for payments platform Ripple’s utility token XRP using the Fibonacci retracement tool.
The trader is predicting an XRP retracement to the $0.46 level, the 0.5 Fibonacci level, and then a move to the upside.
“XRP: I’m bidding $0.466 for the standard.”
XRP is trading for $0.50 at time of writing.
“LQTY: Still think this is one of the better-looking swing trade charts out there IMO. Looks like accumulation / big compression with all EMAs (Exponential Moving Averages) and lots of volume transacted here. Buy and hold for a bit and watch it go up. One downside is it could take a while though.”
Liquity is worth $2.46 at time of writing.
The trader also weighs in on Ethereum, saying a bottom may have formed on the ETH/BTC chart. He says that based on historic patterns after a bottom ETH and other altcoins generally surge in the near term. However, he also predicts a dip for ETH/BTC in the long term.
“ETH: Checking out the ETH/BTC chart here, if this one has short-term bottomed then we should see an altcoin run. I don’t know if this is going to happen here because I ultimately believe Ethereum eventually goes to the .055 level or lower.”
At time of writing, ETH/BTC is trading for $0.66 BTC, or $1,869.
He notes that if a bottom is forming, it could chop around at the current price level for a while longer before a surge.
“It takes a while to form good strong bottoms. Days and weeks chopping is healthy and the longer the consolidation, the stronger the move. We’ve chopped here for about two weeks now and let’s see if this is a short term bottom or not.”
Lastly, Sherpa weighs in on Dogecoin (DOGE) following the meme token’s rally by more than 30% after its most famous supporter, tech billionaire Elon Musk, changed Twitter’s icon to the DOGE logo. He predicts Dogecoin will soon give up its gains.
“DOGE: To be determined if this pump has any legs; typically we see some sort of illiquid move up followed by a swift retrace. First resistance area approaching; IMO this goes all the way down after the Twitter icon is changed.”
DOGE is swapping hands at $0.0952 at time of writing, down from Tuesday’s high of $0.102.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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