$XRP - RSI Breaks Up - Bullish Divergence - Bottom?
Updated
While it appeared a new series was starting to the downside after the break down of the triangle on Friday, I held onto my position even in face of the slew of messages I got that I should get out and re-enter at 0.20-0.24. My reasoning was simple, the daily chart didnt have a whole lot of room to move down and I still see a retrace to the 0.39-0.40 area before it can try to push below 0.25.
This is a very strong bullish bar after the bears showed considerable weakness after pushing below 0.29. In addition there is a clear bullish divergence on the 4H RSI.
Lets assume for the moment that this is the reversal point of the year long bear trend. Usually a very deep Wave 2 occurs, so if we do in fact get up to my 0.39 target, dont be surprised if Wave 2 sees a pull-back to the 0.764 fib around 0.30.
Heres a fun holiday outlook. If I plot a theoretical EW wave using optimal retraces to 0.382 and extensions to 1.272 and 1.0 we would be looking at 0.56 as a target.
Hold on to your hats guys and gals. Time to make some money.
This is a very strong bullish bar after the bears showed considerable weakness after pushing below 0.29. In addition there is a clear bullish divergence on the 4H RSI.
Lets assume for the moment that this is the reversal point of the year long bear trend. Usually a very deep Wave 2 occurs, so if we do in fact get up to my 0.39 target, dont be surprised if Wave 2 sees a pull-back to the 0.764 fib around 0.30.
Heres a fun holiday outlook. If I plot a theoretical EW wave using optimal retraces to 0.382 and extensions to 1.272 and 1.0 we would be looking at 0.56 as a target.
Hold on to your hats guys and gals. Time to make some money.
Note
Right now there is a 1.1 million sell wall at 0.31 on Bitstamp.Note
The 1.1 million sell wall is gone and buy walls are appearing above 0.30Note
Quick zoom into 15m chart to show a possible target to capture a wave.Note
Could be a good point to get out for a quick scalp. The combination of pivot points and RSI way over bought on 15m could be a quick exit and re-entry 0.1-2 lower ...I am staying in though, looking for wave 5.
Note
The expected retrace has happened. Buy anywhere below 0.32.Note
I should add a point to the last comment...Assuming this was wave 1.. wave 2 could go back to 0.294 in theory, the 0.786 fib retrace. Normally I would look for the 0.382 fib retrace to re-enter, but these reversals can be erratic. I did not sell at my target of 0.33489 as marked on my chart this morning. The momentum was enough that it could have blown that level pretty quick and its hard to sell/buy while Im at work... just was safer to leave my position alone.
If we assume the 0.382 retrace were looking at a potential wave 3 extension to 0.39. This is a tricky level as it would also be the 0.382 retrace of the last impulse series down. It is also the HA(P+S1)/2 and 1.272 fib ext of wave 1 of this series.
Related publications
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.