How to Trade This Ascending Parallel Channel on XRP/USD

The price of XRP has had a massive price boost of 21%, in little over one day. This unsustainable behavior was marked by a long zone of overbought RSI levels.

After the price finally hit a temporary top, space was created for a healthy retracement. This is something very reasonable after such a boost.

Now, we find ourselves in this ascending channel. The RSI had the opportunity to cool down a little bit and we see a slow upward trend for XRP again.

I expect that it is preparing for another volatile move upwards. It might first wander around the channel a little bit, but once the price breaks out you need to start paying serious attention or use a crypto scanner to get notified.

There are two ways in which you can trade this channel. First of all, you can wait for the price to retrace to the lower areas of the channel and go in for a LONG position.
Second of all, you can keep an eye on the resistance and once the price starts breaking out, you can monetize the volatile bullish scenario.

Personally, I try to keep using the rules of buy low sell high, so I would not want to buy after a series of green candles. I recommend waiting for the price to drop a bit further and then hold the price until breakout.

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!

Comment:

I decided to update this idea and move to a more conservative channel instead. Follow my new idea here: