Short XRP/ETH
Entry: 0.0023
Stop loss level: 0.00253 (-8.7%)
Profit taking level: 0.00203 (+13.04%)
Ideal position duration: 14 days
Fundamentals
Following last week’s trade idea to sell XRP/ETH at 0.002502, XRP has trended 12% lower against ETH, reaching a low of 0.00222.
The JP Morgan Coin news had weakened overall XRP sentiment while the ETH Constantinople Re-fork scheduled for Feb 27 topped our ideal pick for the other leg of the XRP short.
Currently, JPM Coin is still a prototype and not yet in production. Results from regulatory approval, scalability or whether the coin itself will end up in production are still unknown. However, this news is significant enough to move markets. Headlines from various sources including Forbes had started comparing JPM Coin with Ripple’s xRapid, which uses XRP as a bridging currency for interbank settlements and remittance. The upside for XRP against other crypto pairs is limited as the core value of XRP is being challenged.
On the other hand, ETH recently retook second place in crypto market capitalisation according to Coinmarketcap. With the Constantinople Re-fork scheduled for Feb 27, expect to see heavy bids for ETH against XRP.
- JPM Coin potential threat to XRP
- Cory Johnson has left Ripple as chief market strategist
- According to Coindesk, anonymous sources show a Ripple recruiting email promising an XRP package of up to $3 million
- ETH surpassing XRP for second place in market capitalisation terms
- ETH Constantinople Re-fork scheduled for Feb 27
Technicals
ETH/XRP support trend-line since Aug 2018 has clearly broken downwards.
In the above chart, Fibonacci retracement has been working pretty well with the XRP/ETH pair. Retracement from the top first touched 50% at 0.00225 level, then bounced back to the lower top of 78.6% at 0.00303. XRP/ETH currently trades at around 50% resistance 0.00226, which likely will be taken out, trending down to at least 38.2% at around 0.002.
May trend be your friend!
Jason Fung
Trader
About BC GroupFounded in 2003, Branding China Group (BC Group) is listed on the Hong Kong Stock Exchange since 2012 (HKSE Stock Code: 0863). We are a conglomerate with a diversified portfolio of businesses in marketing communications and technology solutions, where we incorporate blockchain into next-generation technology platforms. Our vision is to move the world forward by unleashing the full potential of the blockchain ecosystem, to transform your tomorrow
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Originally published at telegra.ph on February 18, 2019.
