Hi friends! Welcome to this update analysis on Ripple! Looking at the four hour chart, we can see that the symmetrical triangle has broken to the downside, as expected. If you recall from yesterday's post, I said "we can see that XRP has created a new symmetrical triangle formation. Previously, there was a smaller triangle...which broke to the upside, only to form a new, larger triangle. This price action is identical to what we are seeing in many of the other cryptos, and it suggests that a downside continuation is highly probable." During yesterday's post, XRP was trading at 1.288. Today, it hit a low of 1.023 — a 21% decline! Let that sink in for a minute. 21% in less than 24 hours can put some serious change in the bank. Some people were quick to bash my analysis, like they always are. I wonder if those people are puttin' their money where their mouth is. I sure hope so, because I'm on the other side of that trade with the bears, emptying their pockets to the lint.
So, we can see that the breakdown has occurred. Price is currently finding a bit of support off of a rising support level (teal dots) which originates at the beginning of the rally. If you look closely, you can see that the current candle has pierced this rising trendline — weakening it as a support level. If XPR continues to break below that level, the dark blue trendline will be the next level of support. As you can see, there is still more resistance above XRP, than support below. Above us, we have the triangle, the 50 EMA (in orange,) the 61.8% retrace, the 200 EMA (in purple,) and then the heavy overhead resistance level. Below us, we have the rising dotted support level, the blue trendline, and then the 78.6% retrace. Therefore, the path of least resistance is down. With that said, I wouldn't be surprised if we saw XRP trade back up to the 61.8% retrace, before turning back to the downside. For those of you who don't know, symmetrical traingles often return to the apex, after a breakout, before heading back to the downside. That is normal movement for a triangle breakout. Contrarily, we could see XRP just start to smash through these weakened support levels below us.
All doom aside, there is a small glimmer of bullishness on this chart, and that's on the MACD. We can see two back-to-back bullish divergences (green trendlines) where momentum made higher highs, while price made lower lows. Divergences are typically hit-or-miss, so I don't usually pay much attention to them, unless they correspond with several other indicators. Just take the DIA, SPY, or the QQQ for example — bearish divergences galore, during one of the strongest bull markets in history.
Overall, I expect that the rising dotted trendline will be broken, and price will continue to fall toward my symmetrical triangle target. The overall formation is unmistakably bearish, and the vast majority of indications point to further selling.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
So, we can see that the breakdown has occurred. Price is currently finding a bit of support off of a rising support level (teal dots) which originates at the beginning of the rally. If you look closely, you can see that the current candle has pierced this rising trendline — weakening it as a support level. If XPR continues to break below that level, the dark blue trendline will be the next level of support. As you can see, there is still more resistance above XRP, than support below. Above us, we have the triangle, the 50 EMA (in orange,) the 61.8% retrace, the 200 EMA (in purple,) and then the heavy overhead resistance level. Below us, we have the rising dotted support level, the blue trendline, and then the 78.6% retrace. Therefore, the path of least resistance is down. With that said, I wouldn't be surprised if we saw XRP trade back up to the 61.8% retrace, before turning back to the downside. For those of you who don't know, symmetrical traingles often return to the apex, after a breakout, before heading back to the downside. That is normal movement for a triangle breakout. Contrarily, we could see XRP just start to smash through these weakened support levels below us.
All doom aside, there is a small glimmer of bullishness on this chart, and that's on the MACD. We can see two back-to-back bullish divergences (green trendlines) where momentum made higher highs, while price made lower lows. Divergences are typically hit-or-miss, so I don't usually pay much attention to them, unless they correspond with several other indicators. Just take the DIA, SPY, or the QQQ for example — bearish divergences galore, during one of the strongest bull markets in history.
Overall, I expect that the rising dotted trendline will be broken, and price will continue to fall toward my symmetrical triangle target. The overall formation is unmistakably bearish, and the vast majority of indications point to further selling.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-