There have been attempts of higher highs in the lower time frames but all those efforts have been squelched by the relentless sell pressure in the weekly chart. What was unexpected was the way price action confirmed the double bar bear reversal pattern by week ending January 14. Notice the dip which paused at $0.85.
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I mean that is only $0.12 away from where we expect to find buyers judging from the way XRP buyers reacted and the fact that price action will be right at the main support line. From prior set ups-retrieved from historical prices-depreciations like the one witnessed last week is often followed by tepid price action in consequent sessions and that is way extending that view to this week, we can expect to find strong support at around $0.73 and $0.85.
While at it, our XRP prices is likely to oscillate in a $0.50 range for the better part of the week as defined by the first and second Fibonacci extensions in the weekly chart.
Of course these are probable positions and nothing is written on stone. If buyers inject some momentum today such that XRP prices close above $1.18, then the better for bulls.
From the double bar bear reversal pattern and confirmation, all indicators point to sellers being in charge. We cannot be wrong unless maybe XRP push and close above the middle BB in the daily chart.
Before we begin talking of potentials, lets first see if sellers will close below the double bar reversal pattern and the 61.8% Fibonacci retracement level.
As noted momentum on both charts are bearish meaning it will not be wise to initiate longs unless maybe there are undisputed pointers.
First we must recognize that we are in a bear trend. When we know the general price action mood, then we must note that we are taking shorts only. However, despite the bears, there was a bullish break out on January 18.
Even though it wasn’t confirmed as it was right a resistance, previous minor resistance trend line is now support and from yesterday, prices have been moving higher relative to lower BB. While at it, buy momentum is building up.
I recommend buys with first targets at $2.30