Hi friends! Let's check out Ripple! Right away, I see a common theme in the cryptos. They've bounced hard off of the lows, but many of them are approaching heavy overhead resistance. Enter Ripple! We can see that XRP is doing the exact same thing, as it tests the bottom of the head and shoulders
neckline. XRP formed a V bottom, bouncing off of the blue support level
that I gave you two days ago. We can see that there has been a bullish
crossover on the MACD
, but volume
is falling off of a cliff
. So, we have expanding bullish
momentum, but exhaustion developing in this rally. Additionally, if you look closely, you can see that the 200 EMA
(in purple) is converging with the neckline, strengthening that level as overhead resistance. Even if XRP breaks above, it will have to immediately contend with the 50 EMA
(in orange,) and then the 50% retrace. To be clear, the neckline resistance is do-or-die. Don't be so certain that the bears have tapped out, because if XRP doesn't clear this overhead resistance, the sellers are liekly to come back with a vengeance. A failure at the neckline, will show the bears that we've confirmed it as overhead resistance, and that will be a very negative sign. Pay close attention, to the $1.61 handle!
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. I'm out!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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