Hi friends! I hope you are all doing well. Looking at the four hour chart for Ripple, we can see that XRP remains in a downtrend channel. During yesterday's selloff, the buyers saw value, and stepped in to push the market higher, forming a large (Hammer Candlestick) on the chart. We can see a (Volume Spike) under the hammer candle, which confirms that panic selling was occuring. Such indicators can often indicate trend reversals, but XRP has failed to sustain a rally higher. Additionally, XRP was not able to get back above the 50 EMA (in orange,) and has rolled over to the downside. At the moment, Ripple is hanging on for dear life, just above the 38.2% retracement level. A break below that, will send XRP to test the low made by the hammer candle, and then the 50% retracement level, which corresponds with the bottom of the descending parallel channel (Possible Downside Target.) For the short term, the sellers are in control, as we can see in the downtrend channel. However, for the longer-term view, the bulls are still in control, as we can see by the higher highs and higher lows on the chart. The bulls need to get XRP back above the 50 EMA (in orange,) and above the downtrend channel, for a reversal to materialize.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-