So what we're looking at is Moving Averages. An Exponential with a length of 20, and a Simple Moving average of 40 on the Day Scale.
You'll notice that the 40 is still above the value and was above the value during the entire time all crypto made a rebound. What I'm seeing here is echoed through out a lot of reversal patterns. You'll get a bounce up, but will eventually get a reversal back down. The trend-line that held XRP last September through October is the same Trendline that's holding the price above .28 now. So there's two possibilities now.
1) XRP and all Crypto will be driven lower by the upper resistance line. In which case we will find a new low, experience a bounce and then go through a re-test process.
2) The existing trend-line holds, at which case, we need to pay close attention to the distance between the EMA and the SMA lines. When the two trendlines Get close and cross, there's a strong possibility that we could recover to levels previous to this latest downturn or better.
Still in a learning process here, but that's what I'm seeing by studying the lines.
"The trend-line that held XRP last September through October is the same Trendline that's holding the price above .28 now. " - not clear which trend line you are referring to.
" XRP and all Crypto will be driven lower by the upper resistance line" - resistance lines, trends and moving averages do not drive price, they are things calculated from the price - price drives moving averages, resistance lines and trends.
teknoaxe
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@gingertea, Resistance and Supports, to me, are abstract concept used to describe something that we can't really put a physical meaning to. So you can absolutely look at the terms in different ways. In this case, my view resistance and supports can absolutely be applied to the moving averages, although in much more of an abstract way than just simple trend lines.
I've posted below the time period of XRP August/September to illustrate what I mean You can see the initial bounce being brought back down by the second moving average, in theory. But on that second move downwards, the support line below held, and when the SMA and the EMA squeezed together, XRP broke above, and we got that massive move upwards.
Of course, XRP could have moved in a catastrophic way downward at that time, but the point is that all the action starts when this sort of squeeze happens between the moving averages, and you can consistently see this on moving averages of all scales.
"The trend-line that held XRP last September through October is the same Trendline that's holding the price above .28 now. " - not clear which trend line you are referring to.
" XRP and all Crypto will be driven lower by the upper resistance line" - resistance lines, trends and moving averages do not drive price, they are things calculated from the price - price drives moving averages, resistance lines and trends.