XRP/USDT appears to be supporting after a corrective down move. Price has recently been trading within a rangebound structure between a horizontal resistance at 1.4040 and a support zone at 1.0830.
Price is picking up momentum to the upside. Price a bottom on the 31st January and since then it has been having more upside on the hourly chart.
I am expecting Ripple to pick up momentum after the bounce on the horizontal support zone, and a move up to the horizontal resistance zone at 1.4040.
This trade could play out in 2 ways, I have outlined these below:
-Price finds support at 1.0830, and continues to pick up momentum after the breakout, creating an impulse leg that will reach the horizontal resistance level at 1.4040. -Price breaks out of the support zone, and retests it once again, creating a double bottom pattern before the upside begins. This scenario is preferred due to the fact a double bottom after so much down pressure would show the bulls are participating now just impulsively, but continuously.
Bare in mind, the second scenario is preferred to the first. If price manages to retest the horizontal support again at 1.0830 first, it will be preferred because the up and down moves across have been so sudden and sharp. A double bottom will affirm that there is longer term bullish participation in the pair.
I will updating this analysis if it receives above 40 likes.
@dogalkozmatik, Will update soon, so far it's going perfectly according to plan!
bricoleurs
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thx, however buying in feels too risk to me : 1d Coppock has not crossed 0, TSI still indicates a downtrend, 1d MA100, 1w MA100 are both lightyears away from current price and finally 1w MACD suggests a superstrong downtrend. so i wait and might miss this rally.
TomProTrader
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@bricoleurs, I agree it's risky, hence we wait for one of my above scenarios to play out.
bricoleurs
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i meant even if your "find-support" scenario plays out, based on OBV-EMAs, i do not expect volume/buying power coming to "creating an impulse leg that will reach the horizontal resistance level at 1.4040. ", but might be wrong, u r the pro.
TomProTrader
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@bricoleurs, Yes, if it tests the low, reaching the upper target is significantly less likely. Due to ongoing bullish participation that would be needed to fulfill it.
woldon
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@TomProTrader, and when it doesn't play out but drops to 1.06 and climbs back to 1.08 has the support become resistance? Where does XRP move (down) to from here?
TomProTrader
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@woldon, That's something I'll update, had it happen.