Ripple (XRP/USD) Analysis November 10, 2017

ripple analysis

Ripple (XRP/USD) Analysis November 10, 2017

One thing is for sure, Ripple price action is confined in a bull flag. The other thing that is worth noting is the fact that price action is finding strong support between $0.15 and $0.20 in the weekly chart. These two price levels coincide with key Fibonacci correction levels if you paste that Fibonacci retracement tool between May and March high lows.

Mind you, at current price levels, Ripple has lost 51% of its value after topping at $0.45 in May. Before this correction, early investors made whooping 8900% return on their initial investment after March 2017 lows of $0.005.

Anyhow, after last week’s inverted hammer and a close below the 20 period MA, USD bulls were expected to continue with their initial sell pressure but instead, Ripple has continued to appreciate. Key resistance levels falls at $0.24. If there is a break above that then Ripple might rally towards the next Fibonacci level at $0.26.

For now, I encourage Ripple bulls to buy on dips every time there is a stochastics buy signal in the 4HR chart. This is advised from two technical formation in the daily and weekly chart. We notice that, the candlestick before last week’s inverted hammer had long lower wicks and both candlesticks tested support at $0.16. However, in the daily chart, Ripple bulls are pushing higher within a $0.18 channel marked between $0.14 and $0.32. Secondly note that a triple bottom has formed along the support trend line inside the channel. USD bulls are finding it hard convincingly break below 4HR minor support line at $0.18.

The plan in the 4HR chart will be simple. We shall only be taking longs every time there is a stochastics buy signal. Alternatively, we shall place a buy stop above $0.22 in case Ripple push higher without correcting.

Earlier today, price action closed above the upper BB meaning Ripple was trading above range. That was accompanied by a sell signal after a 3 bar reversal pattern formed along our minor resistance line at $0.21. Ripple bull triggers is entirely dependent on if buy pressure would push through the minor resistance line at $0.21. But as it is playing out, sellers might drive Ripple prices lower towards the minor support zone between $0.18 and $0.19.

Trade recommendation

Until a stochastics buy signal at the oversold territory is printed then Ripple buyers are advised to be patient. Ideal buy signals should be printed at support zones say at $0.14, $0.18 or $0.19.

 

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