Ripple Leads Market, First To Break Above Inv H&S Pattern! (XRP)

Hi friends! Welcome to this update analysis on Ripple! Let's get it! Looking at the four hour chart, you can see the XRP has exploded higher, after yesterday's bullish analysis. It is above the neckline of the inverted head and shoulders pattern, and currently testing the neckline for support. XRP also appears to be creating a small bull flag consolidation, just above the neckline resistance. This is a very bullish development. You all know that I always talk about confirmation, and this is confirmation action. You can see that there was a breakout candle, followed by a red reversal candle that was stopped at the neckline, and now we're forming another green candle. So, this shows us that the neckline was confirmed as support. Now, we want to see XRP break higher, taking out the highs from the last two candles. As XRP moves higher, the first level of resistance is going to be around 1.16 - 1.23. I've highlighted this resistance zone with the red rectangle. If XRP breaks out above there, it should be smooth sailing up to the first target, at about 1.40. With that said, be aware that a breakdown back into the inverse head and shoulders formation would be a negative sign. I don't foresee that happening, but it is something to be aware of.

Looking at the volume, we can see that there was a nice surge, that has been well above the recent average, which is good to see on the breakout. Additionally, the MACD continues to expand higher, as it rallies above the zero line. We have bullish volume, bullish momentum, a bullish breakout from a bullish pattern, and things are looking good. You can also see that XRP is holding above the 200 EMA (in purple,) which it hasn't done since mid January. There are currently no signs of bearishness on this chart, so the bias is to the upside. This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-Magic loves you-

-JD-

ความคิดเห็น:

XRP has reversed back below the neckline of the inverse head and shoulders pattern, as traders seem spooked by the uncertainty surrounding Coinbase's addition of the currency. XRP appears to be finding support on the 50 EMA, but it has lost the 200 EMA. The bulls definitely don't want to see the 50 EMA go, because the 78.6% retrace (in red) is the just below that, and it's critical support. A break below the 786 could unleash a violent wave of selling. Personally, I don't think that's going to happen, but I am paying attention to the developments as they emerge. The largest and most dominant pattern on this chart is the inverse head and shoulders. A small breakout reversal doesn't change that. However, a confirmation below the 768 would be a technical sell signal.