XRP Aiming for $0.73? Don't Let the Bear Channel Fool You.
XRP has been marching to the downside for weeks and it would seem there's no end in sight. Except that we're currently sitting on what *used* to be a resistance zone of $0.55-$0.57. RSI is around 40, Bitcoin could fall to $35,000, the million-dollar question is (hopefully literally):
How do we trade this?
If our only point of analysis is the bear channel, then we would always be looking for a short, which is reasonable. Several other data points interfere with that bias. XRP is currently sitting on what previously was resistance that is now being tested as support; in the $0.55-$0.57 price range. We also have 4 pushes to the downside (you could argue 3 and this is the double bottom) which is a reversal signal that we should watch out for.
Bitcoin is also facing a potential pullback which as a leading indicator, could hinder XRP's ability to mobilize to the upside. The RSI is also around 30.00, a weak indicator on its own, but supports the other data points in this analysis. This is why we should wait for a bull signal and confirmation bar at support before rushing into a long position. We need that confirmation to increase our probability of profit.
Key Points
1. In a Bear Channel, but 4 pushes down complete.
2. Currently Testing Previous Resistance Turning Support.
3. Wait for Bull Signal and Confirmation
4. RSI at 30.00, Reversal to the Upside Probable.
5. Use Caution, Bitcoin could fall further and take XRP with it.
You are solely responsible for your trades, trade at your own risk!
Let us know what you think in the comment section below!
How do we trade this?
If our only point of analysis is the bear channel, then we would always be looking for a short, which is reasonable. Several other data points interfere with that bias. XRP is currently sitting on what previously was resistance that is now being tested as support; in the $0.55-$0.57 price range. We also have 4 pushes to the downside (you could argue 3 and this is the double bottom) which is a reversal signal that we should watch out for.
Bitcoin is also facing a potential pullback which as a leading indicator, could hinder XRP's ability to mobilize to the upside. The RSI is also around 30.00, a weak indicator on its own, but supports the other data points in this analysis. This is why we should wait for a bull signal and confirmation bar at support before rushing into a long position. We need that confirmation to increase our probability of profit.
Key Points
1. In a Bear Channel, but 4 pushes down complete.
2. Currently Testing Previous Resistance Turning Support.
3. Wait for Bull Signal and Confirmation
4. RSI at 30.00, Reversal to the Upside Probable.
5. Use Caution, Bitcoin could fall further and take XRP with it.
You are solely responsible for your trades, trade at your own risk!
Let us know what you think in the comment section below!
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
Trader Engineering Course
**Available Now at TraderEngineering.com**
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