What is important for buyers and trade participants is how this week’s candlestick will end up at. Yes, of course there are bullish pressure developing but will the middle BB act as a strong support or resistance in the sessions to come?
The first thing that we should be focusing more than price action is the $0.35 range separating the 1st Fibonacci extension level at $0.79 and August highs of $0.44.
That in my opinion a strong support zone. Anyhow, this week price action has been a little bit slow and its lows was $0.13 shy off May 2017 highs.
All in all, next week we shall not discount possibilities of buy pressure as there are chances that the long lower wick we are seeing now might buoy Ripple prices despite all the negativity from the media.
Remember, a damning report emerged showing that banks were more interested with the interconnection provided by RippleNet and not the native token (XRP) which we are focusing on. These kind of news are definitely price dampers and can suppress prices for a long time unless otherwise something better come through.
Besides the slowdown in prices, the accumulation along the $0.80 is interesting. Here is one thing that should not escape your mind even if the general mood is bullish: XRP is in a downtrend and the product might realize its full potential longer than anticipated especially if banks fail to support it.
Now, we need prices to push and close above $0.80 and perhaps retest the middle BB before we even think of buying this token.
Now, the accumulation in the daily chart is the result of this slow down and horizontal movement along the middle BB in the 4HR chart.
We saw that break above the middle BB on February 7 and the good thing is that prices are actually still above it which is definitely encouraging for buyers.
All we need is higher highs and close above $0.8 and the moment the resistance trend line in this chart is breached, we can begin fine tuning entries in lower time frame.