Ripple, Possible Reversal In Wedge-Formation, Resistance Above! Hello, Traders Investors And Community, welcome to this analysis about the current situation with ripple and where the price-action will develop further. I made some interesting and significant observations in the current chart which are important to mention. We are looking on the locally 4-hour timeframe and the current situation on the smaller timeframe is matching the middle-to-long-term timeframe coherently, I made also a forecast about ripple middle-term structure and the fractal structure we have currently if you didn't see these already I highly recommend it to you when going to my account and watch the analysis to have a full-depth-overview.
When looking at the chart we can see that ripple is currently trading in a rising wedge which you can see marked in blue in my chart, this is normally a bearish formation that breaks to the downside when confirmed rightly. What supports this possibility at the moment is the huge downward-channel we are trading in and the resistance we have above at the 0.21 USD level, this level and the 600-EMA you can see marked in blue building a coherent bearish confluence-zone here between 0.207 and 0.214 which you see marked with the red boxes in my chart when we visit this area it is within the high likelihood schedule that we confirm it as resistance.
The next time we can expect a visit of this area to test it, it will be important to see how we react here when there comes a volatile red candle to the downside crossing the lower boundary of the rising wedge down the wedge is finally confirmed and it can be traded on the short-side. Overall the wedge can be traded aggressively or conservative, the aggressive approach will be opening a short position in the bearish-confluence-zone and the conservative approach will be when the wedge has confirmed to the downside. In both scenarios, the target will be the same which is the 0.185 level you can see marked in orange in the chart, there is a high possibility given that we reach this target when the wedge confirmed properly.
After the wedge confirmed and the target reached we have to look and contemplate the situation again, it is possible that we get a bounce to the upside here confirming the overall level as support, in this case it is important to hold the overall support to form a possible reversal otherwise when the price is too weak and the support cant behold it is within the possible spectrum that we continue with the downtrend, this will be definitely confirmed when we cross below the 0.175 level which is also matching with the overall bearish picture we have on the bigger timeframe. Remember that the overall move needs to be confirmed rightly and do not rush in a trade, when this happens it is also the best possible entry-place for a trade to take advantage of the down move.
Alright, this should give you a good overview, thanks to everybody for watching, support for more market insight, and all the best!
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Information provided is only educational and should not be used to take action in the markets.
