Ripple (XRP/USD) Analysis January 17, 2018
Ripple has been a monster of late but is it backing off because XLM growing influence? Or are they complementing each other. Whatever the case, that double bar reversal pattern can be a spoiler for buyers. It may look like nothing and we can in fact cover it up with the usual “buyers are in charge” we so often pull.
In this regard, there are some levels-Fibonacci extension levels-which we must watch out and for clarification, I will like us to focus on $1.19. That level is the 2nd Fibonacci extension and is well spaced out from all the chaos from last week’s lows and $2.16. With hindsight, we already knew that there was a probability of this happening after the majority of December 31 candlestick closed above the upper 31.
Obviously, it wasn’t confirmed last week and all we need is confirmation of this bear pressure. It is that reason why I placed my support at $1.19 and even though it may be a long way from current prices, potential reversal with overstretched bears can be a perfect entry for buyers fueling the snap back to main trend.
That may happen at this key level assuming sellers get through that strong support at $1.35.
In the daily chart, the trickle down is clear and the highlight is that dip below the middle BB.
Yesterday’s bear confirmation may see a relentless drive towards $1.19 as we have highlighted with obstacles at $1.42 which as we have seen is the 61.8% Fibonacci retracement level anchored on December 2017 lows and recent highs of $3.5.
XRP prices are currently trending at key support line and after dipping to as low as $1.46 earlier on, we shall wait and see if prices will continue with the slide towards $1.35 and $1.19.
Technically, XRP prices are near the apex of this descending triangle and similar set ups at the past show that it is around these prices when prices tend to break out.
Of course the after last week, a double reversal pattern will likely be confirmed should this sink past $1.35.
Conversely, if there is a strong bullish candlestick from current prices which end up closing above the minor resistance trend line, then wait for a confirmation before initiating longs.