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Charting the course of XRP

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1 hour ago, Staigera said:

I see. 

 

 

But how are resistance points left 3 years ago still a thing? Or is it just a indication that around those numbers last time were alot of sellers buyers so we assume there still are? 

 

You're not alone it's something I can't get my head around either. Exactly what is the resistance? My assumption is that it's bots. 

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1 hour ago, xrp-pat said:

You're not alone it's something I can't get my head around either. Exactly what is the resistance? My assumption is that it's bots. 

It's a self fulfilling prophecy. If traders think that's potential gonna be a resistance line and price will pull back, they will sell or take profit at that level. Not everyone is hodlrs. Doesn't matter who bought or sell at that level and doesn't matter when that has taken place, what important is after a trader read his charts what he or she think can be a good selling or a buying level. I am a trader. It doesn't really matter when. To some yes to some no.

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4 hours ago, JASCoder said:

I wish Tenitoshi hadn't called the "Liquidity Index," as this so confuses many people.
(Crypto Eri said she will address this topic soon, to try and help lol)

Maybe he should have called it... Ummm "Liquidity Projection," or "Liquidity Potential." 
Here is the text from @karstnDE fine note on this, or go read his Coil post here:
https://coil.com/p/karstnDE/Tracking-utility-on-the-XRP-Ledger-Analysis-of-tools-and-a-forecast-attempt/9xvuwpju 

Keep in mind that much of the market makers' capital reserves are held off books, and can only be inferred from by monitoring their behavior. The liquidity providers are playing the part of the invisible hand as far us, the great unwashed masses, know !

IMHO, It's highly likely even Ripple Labs do not know the state of the off-book reserves, as anyone really, can be a "Liquidity Provider."

Hope that helps, but WTF do I know, I'm just a coder :) 

 

This is super helpful, thank you! To confirm, if volume is increasing daily then the liquidity index will rise inherently given that it's calculated on a rolling 28-day basis and the lower volume levels become excluded?

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The upward march continues for XRP.  We are rather significantly overbought on the daily RSI, but barely above oversold on the weekly, so take your pick of which means more to you.  I will be watching the weekly for sell signals and we are nowhere near that right now.  But, as I said yesterday, this is a logical place to take a rest and let the charts catch up to the price for a few days.

We jumped up and tapped $0.34 today and got rejected.  I drew it in on the chart as the next resistance, because it does look like it has some validity over the past 6 months or so.  Next one to fall, I hope.

wk5o2gHT

djKAVlps

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37 minutes ago, Mpolnet said:

This is super helpful, thank you! To confirm, if volume is increasing daily then the liquidity index will rise inherently given that it's calculated on a rolling 28-day basis and the lower volume levels become excluded?

Yes, exactly.

It's more of a macro than micro measurement. 

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For those that were asking about resistance/supports and why they exist... there are multiple reasons.  First, there are the psychological numbers (e.g. $1, $10, etc) that people naturally look at as barometers and usually set to sell or buy once an asset reaches those numbers.  Then, there are the prices where volatility occurs, maybe naturally and organically at first, but they then gain significance as people start to factor them into their thinking.

For example, XRP chopped around $0.30-$0.32 for most of 2019.  A lot of people bought a lot of XRP during that churn and then the price dumped.  A lot of people committed to sell those same XRP if and when the price reached those levels again and, thus, a resistance band is born.  Same with supports. 

People set their buy and sell orders using these data points, sometimes they use fibonacci's to find significant values, but in the end herd psychology kicks in and we are all playing the same game more or less.  There isn't any magic to it.  

But let's extrapolate this to our current situation.  So, right now, I see $0.34 was a resistance point for us.  Go back and look and, sure enough, $0.34 has served as both support and resistance in the past.  Now it's a value we watch... voila!  It's the same all the way up until we surpass ATH, then we write new supports and resistances as we go.  It never ends.

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I think the price action so far is very healthy across the crypto space....big run ups, smaller pull backs.  Of course, I've just applied the kiss of death, so expect a massive 20% crash today across the space in the next 60 seconds.

Edited by 2ndtimearound

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As I wrote in Eric's thread, I am actually very relieved to see this pause in the action.  It speaks to a more substantial rise rather than a quick pump and dump. We cleared the all important $0.30 and $0.32 hurdles and are looking very strong.  Rejoice in the pause from the action, it's a good thing!

Happy St. Valentine's day to all.

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