XRPUSD - Descending Channel Confirmed
Updated
The bearish scenario of my previous idea (linked below) has come to fruition. XRP/USD has invalidated the ascending triangle formation by testing the lower bound and eventually breaking to the downside. The descending channel was then subsequently confirmed when support was found at the lower bound of the channel (as shown).
With the ascending triangle having been broken and the descending channel having been confirmed, we can expect the lower highs and lower lows pattern to continue.
I believe that a test of the upper bound of the descending channel will take place shortly after consolidation.
From there, a breakout higher to the mid 0.50's to low 0.60's could take place if momentum picks up and lifts XRPUSD above the price range of the past month.
If this breakout does not occur, the lower highs and lower lows pattern will continue within the descending channel. If this takes place, traders should take advantage of this pattern by accumulating at the pattern lows while using trailing stops to catch pattern highs.
With the ascending triangle having been broken and the descending channel having been confirmed, we can expect the lower highs and lower lows pattern to continue.
I believe that a test of the upper bound of the descending channel will take place shortly after consolidation.
From there, a breakout higher to the mid 0.50's to low 0.60's could take place if momentum picks up and lifts XRPUSD above the price range of the past month.
If this breakout does not occur, the lower highs and lower lows pattern will continue within the descending channel. If this takes place, traders should take advantage of this pattern by accumulating at the pattern lows while using trailing stops to catch pattern highs.
Note
Final Verdict:XRPUSD did test the upper bound of the descending channel as anticipated, and initially was not able to break through. XRPUSD traded along the upper bound for around 1 day before breaking above the descending channel, thus invalidating the pattern. A new pattern is yet to be established at the time of writing (June 17).
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