Hi friends! Welcome to this update analysis on Ripple! Let's jump right in. Looking at the four hour chart, we can see that XRP appears to be building an inverse head and shoulders
pattern, much like many of the other cryptocurrencies. However, XRP's pattern is a bit lopsided. You can see that the would-be neckline has a dramatic upward tilt, and the current price action is much further from the neckline, than BTC
, LTC, ETH, and others. So, this presents an interesting opportunity. We can see that it's a laggard, compared to the others. Therefore, if the other coins breakout of their respective inverse head and shoulders
patterns, it's likely that XRP will still be the laggard, and will produce a breakout at a later time. So, we can watch the other coins, as an indication as to the likelihood that XRP will eventually break out. Currently, XRP is having a bit of trouble with the blue trendline
. You can see that the current price action is stopping right at it. If we see a breakout above this level, it could produce a decent up-move. However, the 200 EMA
(in purple) is drifting down through the right shoulder, and the 61.8% retrace is just above that, followed by the neckline (in black.) This trailing movement could present some valuable (theoretical) trading opportunities, should the others breakout first. Looking at the MACD
, you can see that there is a nice bullish divergence
on graph, which is present in most of the crypto space. This bullish divergence
, coupled with the inverse head and shoulders
patterns, may be indicative of a powerful rally on the horizon. On the downside, the 50 EMA
(in orange) could continue to act as support.
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.***
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