XRP/USD Long Trade Setup Analysis (4H Timeframe - Bitstamp)🔍 Market Context:
- XRP/USD is in a downtrend, forming lower highs and lower lows on the 4-hour timeframe.
- The price has bounced off a key support zone (green highlighted area) but remains under bearish pressure. Long here should have a tight stop, and be careful not to over margin your position.
- Fibonacci retracement levels indicate potential resistance zones above.
📊 Trade Entry Criteria:
- The price has reacted to a strong support level around 2.79 - 2.80 USD, forming a potential double bottom.
- A bullish reversal is possible if the price breaks above the 2.85 - 2.90 USD resistance zone.
- Alternatively, rejection from resistance could lead to another leg down.
🎯 Trade Targets & Risk Management
- Bullish Scenario:
- Entry Price: Above 2.85 USD
- Take Profit (TP1): 2.95 USD (38.2% Fibonacci)
- Take Profit (TP2): 3.00 - 3.05 USD (50%-61.8% Fibonacci)
- Stop Loss (SL): Below 2.75 USD
- Bearish Scenario:
- Entry Price: Below 2.79 USD (break of support)
- Take Profit (TP1): 2.68 USD (-27.2% Fib extension)
- Take Profit (TP2): 2.54 USD (-61.8% Fib extension)
- Stop Loss (SL): Above 2.85 USD
📉 Profit Target Justification:
- The bullish target aligns with key Fibonacci retracement levels and a previous liquidity zone.
- The bearish target aligns with Fib extensions and historical price action, indicating potential further downside.
📌 Summary
✔ Price at key support level with a possible bounce or breakdown.
✔ Fibonacci confluence provides clear trade setups for both bullish and bearish scenarios.
✔ Risk-to-reward ratio is favourable in both directions.
🔻 Invalidation: If price breaks below 2.75 USD, bullish setups are invalid. Conversely, a strong move above 2.90 USD would invalidate bearish setups.
