Ripple (XRP/USD) Analysis November 8, 2017

ripple analysis

Ripple (XRP/USD) Analysis November 8, 2017

Will this $0.18 trading range come to an end?

This is the 5th month of Ripple horizontal consolidation. Interestingly, May 25 and 26 Hi-Los at $0.32 and $0.14 clearly defines the upper and lower limits of this flat channel. During this period, USD bulls have been consistent with their down pressure. As a matter of fact, the support line at $0.14 has been retested 2 times in the past 3 months. That was before XRP started appreciating within this $0.18 channel.

 

Of course, using the 20 period MA as our trend definer will be useless. You can see how it has been winding up and down as XRP range. So, that aside we shall use trend lines and stochastics for swing highs and swing lows. We can see that from August 20, Ripple has been moving higher along a support trend line resulting in a triple bottoms. The first retest of our secondary support-along the trend line- happened on September 22 and severally between October 22 and November 7, 2017. As a matter of fact after October 22 buy signal, there was another $0.04 channel with a fake break out on November 03. So judging from price action, this minor support trend line where the triple bottoms have been formed will act as our first buy or sell trigger line. If XRP price holds and chart higher, then we enter long in the 4HR chart, in not, traders should buy the USD bulls.

For USD bulls to be in charge, there should be a break below the support trend line at $0.20. Immediate support lines at $0.18 and $0.16 should be the next price action levels. A stochastics buy signal at $0.18 and a bounce higher will entail another triple bottoms in the 4HR chart. In case this scenario pans out, then we should only watch out for strong XRP volumes accompanying a stochastics buy turning away from oversold territory.

 If today’s price action fails to break below main support trend line, then XRP bulls should only look to enter long only after $0.21. The reason is simple, buy when there is a convincing break out from this 16 day minor channel or squeeze.

 

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