Ripping through Resistance (XRP)
Updated
Happy Caturday all. =^.^=
I usually like sorting stocks when I wake up by "volume", this let's me see the coins most likely to move throughout the day. Trading in a high volume coin also lets you move in and out of buy/sell orders with ease. Having been personally stuck in a coin with low volume, not being able to activate my stop-loss because no one was buying is frustrating to say the least... Anyhow this is what brought me to Ripple, being currently the highest volume coin(XRPBTC) on Poloniex right now. Let's see whats going on here.
Ripple exploded around 40 percent since a few days ago. It not only blasted through the negative trend, but also through the 50 EMA(Pink) and 200 EMA(Blue). The volume behind it was impressive as well. Currently Ripple is still looking good. The Stoch is not diving, and the MACD is still shooting upwards. The candles however are starting to slow down, indicating some buyer exhaustion.
So what's the prognosis?
-If I had bought XRP earlier and was riding this breakout, I would HODL and set new stop losses: either right below the 0.5 fib line, or right below the 0.382 fib line (yellow stars). This will allow you to capture your profits in case the situation turns sour. Looking back to the recent downtrend, both of these provided decent support before breaking. If these DO break though, i would expect the general downtrend to continue. If they hold, then this breakout could definitely continue.
-If you have NO XRP, this is not an ideal place to enter. As I stated earlier, candlesticks are showing some buyer exhaustion, and the Stoch is no longer shooting up. If you are interested in buying, I would enter after a double bounce from either the 0.5 or 0.382 line as discussed. IF these supports can hold, they will provide evidence of a continuing breakout.
Last words: I would be Xtra careful with XRP... We have seen it shoot up to insane levels in the past and then come right down.
Stay healthy until our next visit! <3
-Doc
I usually like sorting stocks when I wake up by "volume", this let's me see the coins most likely to move throughout the day. Trading in a high volume coin also lets you move in and out of buy/sell orders with ease. Having been personally stuck in a coin with low volume, not being able to activate my stop-loss because no one was buying is frustrating to say the least... Anyhow this is what brought me to Ripple, being currently the highest volume coin(XRPBTC) on Poloniex right now. Let's see whats going on here.
Ripple exploded around 40 percent since a few days ago. It not only blasted through the negative trend, but also through the 50 EMA(Pink) and 200 EMA(Blue). The volume behind it was impressive as well. Currently Ripple is still looking good. The Stoch is not diving, and the MACD is still shooting upwards. The candles however are starting to slow down, indicating some buyer exhaustion.
So what's the prognosis?
-If I had bought XRP earlier and was riding this breakout, I would HODL and set new stop losses: either right below the 0.5 fib line, or right below the 0.382 fib line (yellow stars). This will allow you to capture your profits in case the situation turns sour. Looking back to the recent downtrend, both of these provided decent support before breaking. If these DO break though, i would expect the general downtrend to continue. If they hold, then this breakout could definitely continue.
-If you have NO XRP, this is not an ideal place to enter. As I stated earlier, candlesticks are showing some buyer exhaustion, and the Stoch is no longer shooting up. If you are interested in buying, I would enter after a double bounce from either the 0.5 or 0.382 line as discussed. IF these supports can hold, they will provide evidence of a continuing breakout.
Last words: I would be Xtra careful with XRP... We have seen it shoot up to insane levels in the past and then come right down.
Stay healthy until our next visit! <3
-Doc
Note
XRP still going, with no break below the 0.382 Fib. At the moment the 0.618 Fib is being tested... Looks like XRP failed the first test(see the skinny top of the recent green candle ?).Notice the 50 EMA(pink) and 200 EMA(blue) too. If the pink line can cross above the blue line, that will set up XRP for even more of a bull run. As you can see back earlier, when the pink crossed BELOW the blue, it set us up for a horrible bear run.
Best of Luck!
-Doc
Trade closed manually
Holding decently at the 0.5 Fib. I will close out for now and throw up some new ideas in the future.Stay healthy!
-Doc
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.