From last week, we can see that Ripple prices rejected lower lows and what a nice bounce from the middle BB.
Even though we can consider this a double bar reversal pattern given the significance of the middle BB-which from our analysis remains a strong support line- we won’t be too quick to conclude or give a go ahead for long entries in lower time frames. That will mostly depend on how price action pans out in the daily chart where fine tuning will be done in the 4HR chart.
For now, we live with the fact that prices started strongly and with virtually no buy pressure, sellers have been liquidating their positions since yesterday and the result is that visible upper wick.
The thing is, all we need is XRP to appreciate and because prices failed to close below the middle BB, it would be awesome developments if prices trend above $1.40 by the end of the week.
In the daily chart, it is obvious that Ripple prices have been stalling and most importantly consolidating along the middle BB.
As we have mentioned before, this flexible resistance trend line bears some significance and as long as prices fail to close above $1.40 or the 61.8% Fibonacci retracement line, then we remain bearish.
That seems likely despite bull momentum picking up and actually printing a buy signal from deep the oversold territory. All we need is a bull surge past the middle BB and we are good to go.
From our entry chart we can see prices bouncing off the middle BB and moving away from the support trend line.
The thing is, prices are likely to move higher in the coming sessions as the 3rd phase of a bullish break out pattern is completed.
Scalpers should look fine tune their long entries and aim for $1.40 and if there is a strong break out at that level, positional traders are encouraged to enter at every bull back.