Buy the Dip: XRP's Breakout Sets the Stage For Test of $1.12?The XRP chart is shaping up to be quite intriguing following the massive breakout from the weekly accumulation period. So, what's next on the horizon?
The charts are indicating that now might be an excellent time to consider re-entering this pair. The colossal breakout not only breached the Monthly SUPPLY/SELL zone that was formed last year but also underwent its first successful test of that level, likely triggering stops at the spike high.
Since the breakout, we've been witnessing a gradual retracement back towards the initial breakout level. However, taking a closer look at the momentum of the price on the Daily charts, it seems we could be gearing up for the next bullish leg up.
Here's the XRP chart for you to check out:
My expectation is that the price will dip into the BUY zone I've marked in the image above. This zone holds significant importance since it coincides with the location of the previous weekly high that lost its validity due to the breakout, now serving as a critical support level. Right at this level, we find the 78% Fibonacci retracement level of the weekly swing up from 0.45, adding further weight to its significance.
With the price gradually slowing down towards this level, my confidence grows in accumulating more XRP. My approach involves patiently waiting for a dip into the buy zone, followed by a clear signal on my TRFX indicator on the 8-hour to daily charts before making any moves.
In terms of targets for this trade, the first one would be the swing high of the breakout at 0.95. And beyond that, I'm eyeing the Monthly SUPPLY/SELL level marked on the chart as the next potential target.
It's essential to approach this setup with caution and wait for the right entry signal, as that can make all the difference in a successful trade. I hope you enjoyed reading this analysis and find it helpful in your decision-making process. Happy trading!
