Hello Traders,
We see majority of Big Caps have been recovering, but Ripple has not managed to recover as much.
Looking at the 4 hour chart, we see a textbook double bottom formation. Usually the time period between troughs can vary from a few weeks to months, with the norm being 1-3 months. We see that initial trough on Feb 6, followed by the second one on March 18th. (roughly month and half)
However, there is one problem. A spike in volume typically occurs during the two upward price movements in this pattern. These spikes in volume are a strong indication of upward price pressure and serve as further confirmation of a successful double bottom pattern. Looking at the chart we saw surge in volume at both bottoms, but we did not see buying pressure being accelerated ruing the advance off of the second trough. (potentially due to law suit against Ripple)
If we don't see significant increase in buying volume and buying pressure in next few days, I see potential head and shoulder patterns in the chart. (pink) This is still hypothetical, and confirmation (56 cents) is needed in order to reinforce this idea. If head and shoulder pattern occurs (highly unlikely), the next support is 35 cents followed by 20 cents. Additionally, EMA200 line is acting as very strong resistance. Since Feb 6th, Ripple tried to break this resistance 3 times, and they were all rejected at the end.
I still believe that Ripple will contest EMA200 line in near future (80 cents), and that would be the last chance for Ripple to decide its fate, or else multiple bear signal will start to emerge.
Happy Trading!
We see majority of Big Caps have been recovering, but Ripple has not managed to recover as much.
Looking at the 4 hour chart, we see a textbook double bottom formation. Usually the time period between troughs can vary from a few weeks to months, with the norm being 1-3 months. We see that initial trough on Feb 6, followed by the second one on March 18th. (roughly month and half)
However, there is one problem. A spike in volume typically occurs during the two upward price movements in this pattern. These spikes in volume are a strong indication of upward price pressure and serve as further confirmation of a successful double bottom pattern. Looking at the chart we saw surge in volume at both bottoms, but we did not see buying pressure being accelerated ruing the advance off of the second trough. (potentially due to law suit against Ripple)
If we don't see significant increase in buying volume and buying pressure in next few days, I see potential head and shoulder patterns in the chart. (pink) This is still hypothetical, and confirmation (56 cents) is needed in order to reinforce this idea. If head and shoulder pattern occurs (highly unlikely), the next support is 35 cents followed by 20 cents. Additionally, EMA200 line is acting as very strong resistance. Since Feb 6th, Ripple tried to break this resistance 3 times, and they were all rejected at the end.
I still believe that Ripple will contest EMA200 line in near future (80 cents), and that would be the last chance for Ripple to decide its fate, or else multiple bear signal will start to emerge.
Happy Trading!
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Ripple is playing a very dangerous game. If we dont see a good bounce at this major resistance level, Ripple is a very big trouble...