The short term trend-assuming prices continue to correct, depended on how bears react at key support levels defined by the Fibonacci extension levels. From the weekly chart, the 4th extension was significant and was the first support level following that close above the upper BB last week.
Judging from the candlestick characteristic, it is clear that bull pressure is high-compare the sizes of the upper and lower wicks and you will get the drift and because the main trend was bullish, it was logical for us to consider long positions only.
But, even if this week’s close higher, next’s week’s candlestick will be definitive because technically, it is likely that a double bar reversal candlestick will be printed for the first time since November 2017 resistance line was broken.
It borders practicality and common sense now that multiple resistance levels have been broken, XRP prices are expected to correct naturally. That may happen but it might also prove us wrong as “irrational exuberance” take charge and drive prices to record highs.
After all, it’s the idea that gives value and price is but a quantifier.
From the daily chart, the middle BB looks like it was a XRP trampoline as buyers found support at that line judging from the yesterday’s doji candlestick when prices closed above the middle BB.
Coincidentally-from the weekly chart, prices reversed right from the 3rd Fibonacci extension level and from price action set up, I recommend patience until after today’s bullish candlestick is confirmed.
Bears recovered 100% of XRP gains. From our entry chart we can see that a 3-bar reversal pattern was formed right at the support and that push above the 78.6% Fibonacci level was our minor break out. I expect prices to continue appreciating over the weekend.