XRPUSD, This Formation Will Validate The Further Outcome!Hello Traders Investors And Community, welcome to this analysis where we are looking at the XRPUSD 4-hour timeframe perspective, the recent events, the current formations forming, what we can expect the next times and how to possibly handle the situation to not fall apart to high volatile movements in the cryptocurrency market. As mentioned in previous analysis XRPUSD build this huge descending S/R-level which was formed by the highs in the previous price-action where it now bounced already stronger than other important cryptocurrencies in the market, the big question is now if this bounce from the long-lasting level is sustainable and XRPUSD will move on to visit higher levels or if it shows up a smaller when not bigger correction before it.
When looking at my chart you can see that XRPUSD just builds this huge descending-channel-formation marked with the blue channel where it currently tests the upper boundary and forms a triangular-cluster which is marked in orange together with support in this range. As XRPUSD showed some upmoves since its drop and test of the remaining support, it can build up here and move beyond the channel to confirm higher which will be a bullish signal for more possible upside to come, otherwise when this not happens and XRPUSD increases with bullish weakness again it can also fall below the triangular-cluster and test firstly the middle-line and EMA-structure of the channel formation before either stabilizing or moving on with bearishness.
Taking all these factors into consideration and the fact that XRPUSD has still strong levels of resistance the bearish scenario B which you can watch marked in my chart is more possible as the bullish scenario A because XRPUSD is also overbought on the higher timeframes the bearish breakdown is more likely. It is important to take note that this established bearishness is currently only on the short-term but when corona increases again and other factors moving the price to the downside this can also turn out in the middle-to-long-term perspective, therefore it is important to prepare for this scenario as what rises strongly can also fall strong which the market has proved several times in the past already, therefore, we need to trade what we see and not think.
In this manner, thank you for watching, support for more market insight and have a good day!
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Information provided is only educational and should not be used to take action in the markets
