XRPUSD / Ripple had a reasonable pullback and is signaling it is prepared to return to following the upward trend. A brief low-volume accumulation phase followed some battling between profit-takers and speculative bulls after a successful re-test of the $2.50 price point. We could see further consolidation with higher lows and lower highs for the next few days, but the longer time frames suggest this will get chased higher rather quickly. I expect we will not see a daily close below $2.50 anytime soon and will likely push through $3 with relative ease. Today may be the last opportunity to buy this dip.
Kommentar
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Kraken is down after the nasty drop overnight last night. Take a look at the 6hr XRPBTC chart from Binance. We had strong push higher on the Moneygram news this morning that was met by sellers at the 78.6% fib extension. We have found new support at the 6hr 100 EMA (light blue) and the shorter-term EMA's have flattened with the 9EMA challenging the 50 EMA from below. A tightening accumulation pattern is also seen, but the high upper shadow suggests we make at least 1 additional test of support (hopefully on continued low volume) or establish a higher low before challenging the 78.6% extension again.
Looks like we needed 1 more test of support produced by the double bottom candlestick pattern. Failed Kumo breakouts happen, but as long as we see continued buying in the 2.50's, the next move is still up. Great buy opportunity for patient traders.
TheKitchenTrader
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Nice technical work.
Red_Ben
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@cpoleary, Thanks! Watch for an hourly close above 2.75 if you're looking to add on confirmation of the reversal. Not only is this where previous profitable bulls have been profit-taking, but it is the top of the ichimoku cloud on the hourly, so an impulse move over 2.75 on high volume is unlikely to be heavily contested. The ideal initial entry was the break of the 200 ma and trendline ~2.65.
Looks like we needed 1 more test of support produced by the double bottom candlestick pattern. Failed Kumo breakouts happen, but as long as we see continued buying in the 2.50's, the next move is still up. Great buy opportunity for patient traders.