- The founder of Into The Cryptoverse tweeted today that MPT theory suggests XRP is currently not a good cryptocurrency to hold.
- At press time, XRP was trading at $0.5012 after it had suffered a 24-hour loss of 0.30%.
- A positive trend line formed on XRP’s chart which suggested that it may challenge a key resistance level soon.
The founder of Into The Cryptoverse, Benjamin Cowen, tweeted earlier today that Modern Portfolio Theory (MPT) suggests that a portfolio which maximizes an investor’s risk-adjusted returns comprises only 1% of Ripple (XRP). In the post, he shared that the ideal portfolio is 72% Bitcoin (BTC), 27% Ethereum (ETH) and 1% XRP.
Meanwhile, the cryptocurrency market tracking website CoinMarketCap indicated that XRP was changing hands at $0.5012. This was after the remittance token’s price had slipped 0.30% during the past 24 hours of trading. In contrast, BTC and ETH both printed gains during the same period. BTC was up 0.07% and ETH’s price had risen 0.46%.
Looking at XRP from a technical perspective, the cryptocurrency established a higher low yesterday, continuing its gradual positive trend it has been in over the past 2 weeks. During the last 3 days, however, XRP’s price had been in a correction phase. Consequently, XRP’s price may be at risk of dropping below the recently-formed trend line.
A breach below this trend line would introduce the cryptocurrency to the risk of descending to the next pivotal support level at $0.4715 over the ensuing days. This bearish thesis will be invalidated if XRP is able to close a daily candle above the 9-day EMA line at around $0.5080.
Thereafter, the logical next step would be for XRP’s price to challenge the resistance level at $0.5380, which coincided with the 20-day EMA line. A daily candle closure above this crucial level would effectively clear the path for XRP’s price to continue its ascent towards the next significant obstacle at $0.5890.
If this bullish momentum remains robust enough, it may even propel XRP’s price to reach $0.6405, overcoming potential profit-taking activities that might arise in the following two weeks.
Conversely, another rejection from the 9-day EMA line could prompt XRP’s price to retreat and retest the positive trend line that formed on its charts.
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