- The failed piercing the lowest support of the correction at $0.88, this is something that we were expecting since our last analysis (you can find it attached below) and it achieved perfectly, entering the buy zone (the pink box) and rebouncing strongly after touching the lowest support of the buy zone which is a very important consolidation zone of Dec 2017.
- Price is now oscilating between the previous lowest point of the downtrend at $0.88 and the 0.786 Fibo retracement of the big picture since the rally started in Dec 2017, XRP is consolidating there.
- We have a SPRING formation, these means that XRP went out from the trading range (green box) going lower than the previous low of the trend, giving bears the sense that downtrend is still active and may continue its way down, but it quickly rejects the price getting back into the trading range inside the green box. It is like a bear trap when a downtrend is ending and it is usually a good signal that a trend reversal is getting in, by now, price is holding well on the price inside the green box, it is a good signal.
- We finished the downtrend movement inside the buy area (pink one) with a very large and convincing "Hammer Candlestick" which is also a trend reversal sign.
- Also BTC is forming a very beautiful inverted pattern that if broken, as now they are moving with a very high correlation, it will ride XRP to $1.13 which is the next very strong resistance to test and see if XRP can go higher from there.
- $1.13 is also very close to the downtrend line we have since the last important upside from Jan 17 (the white line). If XRP is able to break the $1.13 resistance, it is very likely XRP will go through the also.
XRP is forming a Bullish Pennant, don´t sure if it will brake it due to the low volume of the weekend, or it will be trading sideways for the next tow days, lets see.