XRP → Ready to Rocket!? A Simple Chart Answers that Question!
XRP found its way out of the bear channel after a 3-leg push downward followed by a bullish reversal. The price meandered sideways and fell below the 30EMA and 200EMA ribbons looking for support. Are we ready for takeoff? Or are we going to sub $0.50?
How do we trade this?
The current price is at $0.60 above the support zone of $0.57. Sideways outside of a bear channel does not give us the confirmation we need to enter a trade. What we need is a bull signal bar on or near the Support Zone to confirm that the bulls are here to carry us upward.
It's reasonable to wait for the price to fall a but further and bounce. Look for a bull signal bar closing on or near its high followed by a strong confirmation bar. Longing in the $0.59 area gives plenty of room for a 1:2 or 1:3 Risk/Reward ratio, a reasonable ratio given we're looking for a trend reversal. I would not short in this scenario until we see more price action.
Long Entry: $0.5850
Stop Loss: $0.5416
Take Profit: $0.7150
Risk/Reward Ratio: 1:3
1. Three Pushes Down, Bull Breakout of Bear Channel.
2. Not a Strong Breakout. Look for Bull Signal Bar.
3. Price Below 30EMA and 200EMA. Wait for Support Zone.
4. RSI at 40.00 but below Moving Average.
5. Wait for Bull Signal Bar for Confirmation to Long.
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