Hi friends! Welcome to this update analysis on Ripple! Let's jump right in. Looking at the four hour chart, we can see that XRP appears to be building an inverse head and shoulders pattern, much like many of the other cryptocurrencies. However, XRP's pattern is a bit lopsided. You can see that the would-be neckline has a dramatic upward tilt, and the current price action is much further from the neckline, than BTC, LTC, ETH, and others. So, this presents an interesting opportunity. We can see that it's a laggard, compared to the others. Therefore, if the other coins breakout of their respective inverse head and shoulders patterns, it's likely that XRP will still be the laggard, and will produce a breakout at a later time. So, we can watch the other coins, as an indication as to the likelihood that XRP will eventually break out. Currently, XRP is having a bit of trouble with the blue trendline. You can see that the current price action is stopping right at it. If we see a breakout above this level, it could produce a decent up-move. However, the 200 EMA (in purple) is drifting down through the right shoulder, and the 61.8% retrace is just above that, followed by the neckline (in black.) This trailing movement could present some valuable (theoretical) trading opportunities, should the others breakout first. Looking at the MACD, you can see that there is a nice bullish divergence on graph, which is present in most of the crypto space. This bullish divergence, coupled with the inverse head and shoulders patterns, may be indicative of a powerful rally on the horizon. On the downside, the 50 EMA (in orange) could continue to act as support.
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.***
Could the whales manipulate the price so that it looks like a head and shoulders pattern?
MagicPoopCannon
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@SwoorupJoshi, Why assume that, when there are clear inverses all over the place? What we can see now, is an inverse. If something else develops, we will address it then.
-Magic-
S73417H
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One more dip. Dragged down by BTC.
DollarsAndSense
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Hi Magic,
Love your charts! I have come up with the below.
XRP appears to have a put in a bottom bouncing off the 200EMA (Green Line) and 78.6 Fib Retracement (Overlaid).
I think we are looking for an entry above yesterdays green bar around 108.93 and look to catch the second leg up in the move back to the long term trend. This set up is tempting on a shorter timeframe and i think can be looked at by experienced traders
So entry is 108.93, with SL 88.00, Targets are 129.17 and 161.03 (The Black Lines)
Let me know your thoughts Magic, i've been charting for 15 years so I might be charting in the old age error! Your opinion will be appreciated dearly.
DollarsAndSense
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@DollarsAndSenses, Sorry decimals wrong entry is 1.08, with SL 0.88, Targets are 1.29 and 1.61 (The Black Lines)
japanesus
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So what i'm reading is to let the other big three break out first—then once they do, move some profits over to XRP since it seems to be lagging?
BeefStew
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Thanks Poop, been waiting for this update.
Simple_Renko
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I love poopy.
Jukkez
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Meh.. No confirmation, ugly waves, an overall week feeling.. I'm hoping for a better st-valentin gift but thx