Question

Analyze the XRP crypto currency using the CCI with different boundary levels, and evaluate each of the models in its ability to maximizing the returns.

1. Provide some background to the area under study:
   1. What is Technical Analysis and how is it related to financial decision making? (with references)
   2. How has the field gained importance for the last two decades or so? (with references)
   3. How would you explain the role of crypto currencies in investments and what can you say about the specific XRP crypto

Answer 1

Note: Investing in cryptocurrency or tokens is highly speculative and the market is largely unregulated.

Answer a. Technical analysis is a methodology that makes buy and sell decisions using market statistics. It primarily involves studying charts showing the trading history and statistics for XRP cryptocurrency is being analyzed. To perform technical analysis, investors start with charts that show the price and trading volume history of a particular security for example, XRP cryptocurrency as well as host of other statistical measures such as moving averages, maximums and minimums, and percentage changes. The idea is to use the charts to identify trends and changes in those trends to make better financial decision.

Answer b. In the past few years, XRP cryptocurrency has been one of the most discussed topics in the financial industry. It is a digital asset launched to offer the same convenience of credit and security guarantees in the course of foregoing its added processing fees and times as well as to work as a means of exchange that utilizes cryptography to control its establishment and administration, instead of depending on central authorities.

The XRP cryptocurrency price is way higher than it was at the start of the month.

Answer c. Investing in cryptocurrencies or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.