Ripple Setting Up for Another Major Breakout Soon??
Updated
There's a lot to take in with this small 4 hour chart on XRP, but before we get into the bullish talk, lets take a moment to recognize that there is bearish divergence with a peak on the RSI. Hence the reason for the most recent pullback in price.
But has it finished playing out yet is the question?
We ask this question due to the fact that theres is a bullish pattern forming that is also giving us different signals on the same RSI.
When we look at the recent swing high on this 4 hour chart, we can see that something that resembles what is called a 3 Rising Valleys pattern is forming and although you typically trust these only at the bottom of a downtrend rather than at the top one.. the triple hidden bullish divergence that has now painted could be giving us a signal of a continuation of trend.
If this is the case, it is my belief that Ripple will have targets of around 1.04 and ultimately 1.25 eventually.
But has it finished playing out yet is the question?
We ask this question due to the fact that theres is a bullish pattern forming that is also giving us different signals on the same RSI.
When we look at the recent swing high on this 4 hour chart, we can see that something that resembles what is called a 3 Rising Valleys pattern is forming and although you typically trust these only at the bottom of a downtrend rather than at the top one.. the triple hidden bullish divergence that has now painted could be giving us a signal of a continuation of trend.
If this is the case, it is my belief that Ripple will have targets of around 1.04 and ultimately 1.25 eventually.
Note
Quick update on this.. our primary support area broke down shortly after making this post.0.739 would be the next level that must hold. Our potential 3 rising valleys pattern has been invalidated along with the hidden bullish divergence.If 0.739 does not hold, *0.699 would make for a great low risk long entry level with a nice tight stop loss below 0.668.
This is an asset that is not my favorite to trade right now but with the interest in it lately it is still worth tracking and taking advantage of any low risk opportunities that may come.
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