XRP Ready To LaunchSince touching the bottom of $0.25 in September 2018, XRP has continued to produce higher lows. Though we will discount the Swell pump as that is something that typically happens yearly with XRP. Post Swell saw XRP return to the $0.28 region. In recent history XRP has found that $0.38 is a key level of resistance. Every time that XRP has attempted to breach this resistance it has been met with rejection and pushed back down to the $0.30 region. This has allowed traders and investors alike plenty of opportunity to accumulate for their positions.
Moving onto the indicators. The RSI indicator bottomed out in August 18, and has since produced higher and higher lows. This tells us that buyers are taking an interest at these lower levels and that slowly, the bulls, are beginning to gather strength. The same can be said of the MACD indicator, though it bottomed in April of 2018. This is not surprising as the trend usually continues even after the MACD has either peaked or bottomed. Though, as we can note now, the MACD is approaching neutral 0 on the 3-Day chart. Looking at the price action versus our indicators we can see that there is mounting bullish pressure with XRP.
It is typical of XRP to have very long periods of price descent followed by long periods of accumulation. These are almost always met with a sudden burst of energy upwards producing tremendous gains for those who accumulated. It seems the time for XRP to make a move is not in the distant future and is going to be upon us quite quickly.
For this expected move traders could even enter at current price levels at $0.328, though optimally buys closer to $0.30 are preferred. Laddering in with a stop loss above $0.34 for entry is certainly an ideal position. The resistance levels at $0.38 have been tested three times. Typically, we find that when a support or resistance level is tested on the fourth time they break. Please note that this is not always the case, and that proper risk management is absolutely necessary.
We will enter position here with a stop loss of $0.29. The target for the move up is the fibonacci extension that brings the target to $0.50. However, it may not reach precisely $0.50 as there is a lot of resistance at this level. $0.48 is much more reasonable a target. It is quite possible that XRP will touch the "Dump zone," at $0.50 where it is likely to be met with a swift rejection. From there we will look for a move down and consolidation. Entering at current price levels and hitting $0.50 presents us with a gain of 54.68%. Good returns for any trader.
