Here is the rewritten content:
Payments-Focused Cryptocurrency XRP: Not Out, But Dogecoin’s Outlook Grim
XRP’s Down, But Not Out
XRP, a payments-focused cryptocurrency, has taken a hit, dropping 25% this month to $2.28, according to data from TradingView and CoinDesk. However, a closer look at the situation reveals a more optimistic outlook for XRP bulls.
The sell-off has been steep, but it corresponds to only a 38.2% Fibonacci retracement of the rally that started at Nov. 4’s low of 49.5 cents and reached a high of $3.40 on Jan. 16. This is a positive sign for XRP bulls, as it indicates potential areas for the price to resume its previous trend.
Dogecoin’s Grim Outlook
On the other hand, dogecoin (DOGE) is facing a dire outlook. The world’s largest meme cryptocurrency by market value has dropped below 21 cents, retracing more than 70% of the rally marked by October lows near 10 cents and a high of 48.4 cents in December. This has led to the conclusion that the primary trend has ended, as the retracement has exceeded the 61.8% level.
Fibonacci Retracement Analysis
The Fibonacci series is a mathematical formula used to predict how far an asset might retrace the primary trend. The sequence is formed by adding the two preceding numbers to find the next number. The ratio of any number to the next higher number is close to 0.618, and dividing any number in the sequence by the one two spaces to the right yields 0.382.
Traders use these ratios and the 50% level to predict how far an asset might retrace the primary trend. In XRP’s case, the retracement is expected to resume its previous trend, with potential levels to watch at 38.2%, 50%, and 61.8%.
Recent Developments
Recent news has been positive for XRP, with the Hashdex Nasdaq XRP Fund entering a pre-operational phase with Brazil’s Comissão de Valores Mobiliários (CVM). This is a significant development, as it marks the first spot XRP exchange-traded fund (ETF) to be registered in Brazil. The success of this fund could accelerate institutional demand for XRP if the uptake of bitcoin (BTC) and ether (ETH) ETFs is any guide.
Conclusion
In conclusion, while XRP’s recent performance has been disappointing, the outlook for the cryptocurrency remains positive. The 38.2% Fibonacci retracement level indicates potential areas for the price to resume its previous trend, and recent news flow has been positive. On the other hand, dogecoin’s grim outlook suggests that the primary trend has ended, and further declines are possible.
FAQs
Q: What is the current price of XRP?
A: As of the current date, the price of XRP is $2.28.
Q: What is the current price of dogecoin (DOGE)?
A: As of the current date, the price of dogecoin (DOGE) is below 21 cents.
Q: What is the significance of the 38.2% Fibonacci retracement level in XRP’s price action?
A: The 38.2% Fibonacci retracement level is a significant area of support for XRP, indicating potential for the price to resume its previous trend.
Q: What is the significance of the 61.8% Fibonacci retracement level in dogecoin’s price action?
A: The 61.8% Fibonacci retracement level is a significant area of resistance in dogecoin’s price action, indicating that the primary trend has ended.
