XRP might trigger a 4hr h&s pattern; watch for volume to confirm
it currently has broken the neckline of a 4hr head and shoulder pattern on the 4 hour chart so it may follow this candle up if it closes below the neckline with a confirmation candle + bear volume that could take us potentially as low as this projected target. Best to wait for this current 4hr candle to close and also to see what the followup candle does before making the decision to short. Also watch for a surge in bear volume too. It is very probable that this pattern will be triggered for a few reasons. 1. Buy the rumor sell the news of xrapid going live. Selling the news is a standard trick for a majority of traders and it would be no big shock to see them once again use that method here. 2. the daily RSI has been in bad need of a cool off ever since the initial bull surge 3. we are currently below the neckline and it is the first red candle that has broken the bottom trendline support of the ascending bull pennant. So probability does favor a breakdown here. However I think the breakdown will be very temporary and that we will hopefully see good bounce support on the 1 day chart from the 200 ma (represented here as the horizontal dotted tan line) and we should see a good enough bounce to get the price action back inside the ascending triangle pattern to avoid triggering a bart breakdown from the bear flag. We may even throw a wick down below the 1 day 200 ma to hit the drop down target of the 4 hr head and shoulders pattern but ultimately find good support on the 1 day 200ma and bounce back up and into the ascending triangle pattern before triggering the bull flags breakdown resulting in a bear trap fakeout. Just my opinion of course I could be wrong so financial advice this should not be taken as. Thanks for reading!
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