Ripple - Symmetrical triangle and bullish breakout
Updated
Today, we would like to update our thoughts on the Ripple cryptocurrency. We continue to notice signs of exhaustion from the technical perspective. At the moment, we closely watch the symmetrical triangle on the daily chart of XRPUSD. The recent breakout from the pattern is bullish. However, we have no reason to change our bearish bias on Ripple.
As we noted previously, we continue to think that the recent bounce higher still represents merely “buy the rumor, sell the fact” behavior. That view is also supported by bearish macroeconomic factors, which will be challenging for the whole market to overcome.
In addition to that, a lawsuit between the SEC and Ripple Labs, Inc. continues to loom over the fate of this cryptocurrency. Because of that and other factors, we stay committed to our price targets at 0.30 USD and 0.28 USD.
Illustration 1.01
Illustration 1.01 shows the daily chart of XRPUSD. The bullish breakout took place from the symmetrical triangle, which is normally considered a continuation pattern. However, we would like to point out a significant decrease in volume as the price continued to rise and finally broke to the upside; that is a bearish development, suggesting a further loss of momentum.
Technical analysis - daily time frame
RSI shows signs of exhaustion. The same applies to MACD and Stochastic. DM+ and DM- are bullish, with ADX suggesting the peak of bullish conditions. Overall, the daily time frame suggests that the bounce nears its end. In order to invalidate this thesis, we would like to see a pick up in volume accompanying a breakout above the recent high.
Illustration 1.02
Illustration 1.02 shows the monthly chart of XRPUSD. The yellow arrow points to the low monthly volumes. That reflects little interest among new investors, which is bearish.
Technical analysis - weekly time frame
RSI and Stochastic are bullish. MACD is also bullish but stays in the bearish zone. DM+ and DM- are bullish. Overall, the weekly time frame is bullish; however, the trend is weakening.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
As we noted previously, we continue to think that the recent bounce higher still represents merely “buy the rumor, sell the fact” behavior. That view is also supported by bearish macroeconomic factors, which will be challenging for the whole market to overcome.
In addition to that, a lawsuit between the SEC and Ripple Labs, Inc. continues to loom over the fate of this cryptocurrency. Because of that and other factors, we stay committed to our price targets at 0.30 USD and 0.28 USD.
Illustration 1.01
Illustration 1.01 shows the daily chart of XRPUSD. The bullish breakout took place from the symmetrical triangle, which is normally considered a continuation pattern. However, we would like to point out a significant decrease in volume as the price continued to rise and finally broke to the upside; that is a bearish development, suggesting a further loss of momentum.
Technical analysis - daily time frame
RSI shows signs of exhaustion. The same applies to MACD and Stochastic. DM+ and DM- are bullish, with ADX suggesting the peak of bullish conditions. Overall, the daily time frame suggests that the bounce nears its end. In order to invalidate this thesis, we would like to see a pick up in volume accompanying a breakout above the recent high.
Illustration 1.02
Illustration 1.02 shows the monthly chart of XRPUSD. The yellow arrow points to the low monthly volumes. That reflects little interest among new investors, which is bearish.
Technical analysis - weekly time frame
RSI and Stochastic are bullish. MACD is also bullish but stays in the bearish zone. DM+ and DM- are bullish. Overall, the weekly time frame is bullish; however, the trend is weakening.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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XRPUSD shows sign of exhaustion, with some delay behind BTCUSD and other cryptocurrencies.
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