The Golden Pocket, a trader’s ultimate test
XRP, a citizen of the Ripple society, was stranded in an unknown land: ‘The Golden Pocket.’ Amidst the uncertain downtrending pressure, the chances of survival were in question. Can the choice between walking further or staying put be left to instincts? The risk of losing it all on one end, yet beyond that precipice, if the winds of liquidity smiled, was a rally sharp enough to carve his name into the ledger of the lucky.
The phantom zone of Golden Pocket
A Fibonacci Retracement tool- a special zone called the Golden Pocket is often a term common amongst traders in crypto. To understand the Golden Pocket, we trace back its origin to the well-known term, ‘Golden Ratio (φ)’. Globally, we see the Golden ratio used by traders to understand the Fibonacci retracement levels. They used this as a tool to forecast the potential movements in the market, comparing market probabilities to make sound trading decisions.
In plain terms, it is simply a point before a trend could continue an uptrend or fully reverse. Macro-vision, an analyst specialised in Crypto and the financial market, states that XRP is indicating a downward or bearish trend. But how did they call it the ‘Golden Pocket’? Mathematician Martin Ohm was the first to use ‘Golden’ to represent a ratio or a section, and the word ‘pocket’ in crypto probably represents a safety net. Hence, it could potentially mean a point caught in the basket, to say “Last Chance!”.
The Golden Threshold
This special zone is the range between the 61.8% and 65% Fibonacci retracement levels, a potential point for a price reversal. The string of numbers, a number that is the sum of its preceding numbers, chained along to create a sequence, is what Fibonace sequences are.
In crypto, you see them as 23.6%, 38.2%, 61.8%, representing the potential bearish and bullish trends. But they could sometimes give false signals, too. From the Pyramids to MonaLisa, and now finally in the modern day crypto, we see the influence of Fibonacci and the role of the Golden Ratio.
Hence, XRP now sees the risk of losing as more probable, a compass to take more cautious steps further is viable. Well, who wants to gamble blindly when you know you ought to get lost in the woods?