Symmetric Triangle Nearing Apex: Bull & Bear Target (XRPUSD)
There is a symmetric triangle nearing its apex on Ripple's XRP/USD chart. There is likely to be a strong breakout in either direction from this apex. If this breakout occurs on heavy volume, we are extremely confident that the ensued trend will continue to strengthen. We consider "heavy volume" to be anything over 5 million contracts within a 2 hour bar. If there is not heavy volume, we will not take a position. If there is a bullish movement on significant volume, we will take a bullish position in the underlying with a profit target of 0.50771. If there is a bearish movement on high volume, there is a bearish target down -10.33% from the apex of the symmetric triangle at at 0.4113. 10.33% is the size of the left side (height) of the triangle.
If there is a down movement, it is important to recognize the resistance level held prior that also held as some support on the consolidation level on June 22nd. This area was also consolidation on the June 24th. This level is even more significant because it aligns with the 50% retracement of the Fibonacci levels. This could interfere with the downward movement, so, if we do see a bearish breakout, we would wait to initiate our bearish position until XRP falls below the 0.45395 level. Then, our target would continue to be the 0.4113 level.
If there is a down movement, it is important to recognize the resistance level held prior that also held as some support on the consolidation level on June 22nd. This area was also consolidation on the June 24th. This level is even more significant because it aligns with the 50% retracement of the Fibonacci levels. This could interfere with the downward movement, so, if we do see a bearish breakout, we would wait to initiate our bearish position until XRP falls below the 0.45395 level. Then, our target would continue to be the 0.4113 level.
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