🔍 Market Context:
- XRP/USD is in a downtrend, forming lower highs and lower lows on the 4-hour timeframe.
- The price has bounced off a key support zone (green highlighted area) but remains under bearish pressure. Long here should have a tight stop, and be careful not to over margin your position.
- Fibonacci retracement levels indicate potential resistance zones above.
📊 Trade Entry Criteria:
- The price has reacted to a strong support level around 2.79 - 2.80 USD, forming a potential double bottom.
- A bullish reversal is possible if the price breaks above the 2.85 - 2.90 USD resistance zone.
- Alternatively, rejection from resistance could lead to another leg down.
🎯 Trade Targets & Risk Management
- Bullish Scenario:
- Entry Price: Above 2.85 USD
- Take Profit (TP1): 2.95 USD (38.2% Fibonacci)
- Take Profit (TP2): 3.00 - 3.05 USD (50%-61.8% Fibonacci)
- Stop Loss (SL): Below 2.75 USD
- Bearish Scenario:
- Entry Price: Below 2.79 USD (break of support)
- Take Profit (TP1): 2.68 USD (-27.2% Fib extension)
- Take Profit (TP2): 2.54 USD (-61.8% Fib extension)
- Stop Loss (SL): Above 2.85 USD
📉 Profit Target Justification:
- The bullish target aligns with key Fibonacci retracement levels and a previous liquidity zone.
- The bearish target aligns with Fib extensions and historical price action, indicating potential further downside.
📌 Summary
✔ Price at key support level with a possible bounce or breakdown.
✔ Fibonacci confluence provides clear trade setups for both bullish and bearish scenarios.
✔ Risk-to-reward ratio is favourable in both directions.
🔻 Invalidation: If price breaks below 2.75 USD, bullish setups are invalid. Conversely, a strong move above 2.90 USD would invalidate bearish setups.
- XRP/USD is in a downtrend, forming lower highs and lower lows on the 4-hour timeframe.
- The price has bounced off a key support zone (green highlighted area) but remains under bearish pressure. Long here should have a tight stop, and be careful not to over margin your position.
- Fibonacci retracement levels indicate potential resistance zones above.
📊 Trade Entry Criteria:
- The price has reacted to a strong support level around 2.79 - 2.80 USD, forming a potential double bottom.
- A bullish reversal is possible if the price breaks above the 2.85 - 2.90 USD resistance zone.
- Alternatively, rejection from resistance could lead to another leg down.
🎯 Trade Targets & Risk Management
- Bullish Scenario:
- Entry Price: Above 2.85 USD
- Take Profit (TP1): 2.95 USD (38.2% Fibonacci)
- Take Profit (TP2): 3.00 - 3.05 USD (50%-61.8% Fibonacci)
- Stop Loss (SL): Below 2.75 USD
- Bearish Scenario:
- Entry Price: Below 2.79 USD (break of support)
- Take Profit (TP1): 2.68 USD (-27.2% Fib extension)
- Take Profit (TP2): 2.54 USD (-61.8% Fib extension)
- Stop Loss (SL): Above 2.85 USD
📉 Profit Target Justification:
- The bullish target aligns with key Fibonacci retracement levels and a previous liquidity zone.
- The bearish target aligns with Fib extensions and historical price action, indicating potential further downside.
📌 Summary
✔ Price at key support level with a possible bounce or breakdown.
✔ Fibonacci confluence provides clear trade setups for both bullish and bearish scenarios.
✔ Risk-to-reward ratio is favourable in both directions.
🔻 Invalidation: If price breaks below 2.75 USD, bullish setups are invalid. Conversely, a strong move above 2.90 USD would invalidate bearish setups.
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.
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.