Hi friends! Welcome to this update analysis on Ripple! Let's jump right in! If you recall from my last post, on 2/5/18, XRP was forming the recent low. Since then, it found support with the rest of the market, and has rallied into the 78.6% retrace. However, we shouldn't get too excited just yet. If you look closely, you can see that a small head and shoulders has formed over the 786. I looked at this formation on the 1 hr chart, just to blow it up a bit, and it definitely appears to be a small head and shoulders pattern. This development is in line with what I'm seeing in many of the other coins that I follow. Most have either created bear flag consolidations, or are rolling over with this sort-of head and shoulders look. We can see that volume has collapsed again, as the bulls fade away, without any real follow-through.
Now, I'd like to draw your attention to the 50 EMA (in orange.) As you can see, XRP has not been able to surpass it, practically since the all time high. This is a common flavor in the crypto space right now. The 50 EMA is like crypto kryptonite (pun intended.) Looking at the price action right now, XRP is rolling over like dog to it's master, and it's not even at the 50 EMA yet. So, let me be clear about the technical implications here. We still remain in a bear market, and the bears are in full control. As far as I'm concerned, all I see is a lower high forming. If we can't get above that 50 EMA, there is absolutely NO reason to be bullish. Even if we do surpass the 50, then we will have to contend with the blue trendline, the 200 EMA (in purple,) the rising long-term support (dotted trendline), the 618, and then ultimately the heavy overhead resistance, at the 50% retrace. There is a LOT more resistance above, than support below, so down is the path of least resistance. Furthermore, my symmetrical triangle target wasn't hit. Perhaps XRP wants to go down there and test my target, before putting in a real bottom.
Speaking of the bottom, we have to note the developments on the MACD. I'd like to draw your attention to the dotted rising trendline down there. You can see that momentum has been making higher lows, as price has been making lower lows on the chart. This is an indication of a broad shift in momentum, and can often be a precursor to an impending rally. With that said, technically, I can see that the bulls are attempting to form a bottom around here. We may need one more flush to the downside (so that my bearish targets can be hit =D) before a true bottom forms in this market. On the downside, watch for support at my target around 0.42. On the upside, look for the 50 EMA to put rallies in check. A break above the 50 EMA would be a reason to reassess the advancement of the bulls.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Now, I'd like to draw your attention to the 50 EMA (in orange.) As you can see, XRP has not been able to surpass it, practically since the all time high. This is a common flavor in the crypto space right now. The 50 EMA is like crypto kryptonite (pun intended.) Looking at the price action right now, XRP is rolling over like dog to it's master, and it's not even at the 50 EMA yet. So, let me be clear about the technical implications here. We still remain in a bear market, and the bears are in full control. As far as I'm concerned, all I see is a lower high forming. If we can't get above that 50 EMA, there is absolutely NO reason to be bullish. Even if we do surpass the 50, then we will have to contend with the blue trendline, the 200 EMA (in purple,) the rising long-term support (dotted trendline), the 618, and then ultimately the heavy overhead resistance, at the 50% retrace. There is a LOT more resistance above, than support below, so down is the path of least resistance. Furthermore, my symmetrical triangle target wasn't hit. Perhaps XRP wants to go down there and test my target, before putting in a real bottom.
Speaking of the bottom, we have to note the developments on the MACD. I'd like to draw your attention to the dotted rising trendline down there. You can see that momentum has been making higher lows, as price has been making lower lows on the chart. This is an indication of a broad shift in momentum, and can often be a precursor to an impending rally. With that said, technically, I can see that the bulls are attempting to form a bottom around here. We may need one more flush to the downside (so that my bearish targets can be hit =D) before a true bottom forms in this market. On the downside, watch for support at my target around 0.42. On the upside, look for the 50 EMA to put rallies in check. A break above the 50 EMA would be a reason to reassess the advancement of the bulls.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-