Looking at the current four hour XRP chart, we can see that things aren't looking so great at the moment. After finding huge resistance at the top of the falling wedge pattern (blue upper and lower trendlines) price began to fall dramatically. Additionally, there was a bearish crossover of the moving averages, which just occurred a few days ago. To make matters worse, XRP is forming a bear flag BELOW the 61.8% Fibonacci retrace of the December-February bull run. That is not a good look at all.
What I find most interesting about it though, is that the price target for that bear flag is exactly on the bottom of the entire falling wedge formation. For those who don't know, a price target for a bear flag is generally found by subtracting the height of the flag pole from the breakdown point. Since there isn't currently a breakdown, I've copied and dragged the flag pole below the flag, where I think it could break down.
Some of you may be wondering why the dashed trendline looks longer than the flag pole, if it's a copy of it, and the only reason is because this is a log chart. If it were not set to log, the two trendlines would be have an identical length, and the price target would still reach the same level.
So, this is basically projecting a price decline for XRP to make new lows in this formation, which would be somewhere in the 0.16 area.
To anyone who wants to debate the bear flag, it is a perfect bear flag by definition. This is a text book example of a massive bear flag. Now, that doesn't necessarily mean that it will break to the downside, because no pattern works 100% of the time. However, when you see a sharp decline, followed by a sideways consolidation (a pennant in this case) it's a bear flag.
So, we will have to see how it breaks, but the fact that XRP is showing this much weakness below the 61.8% retrace is not a good thing.
Also, I'm sure you've noticed that red diagonal trendline cutting across the screen. Well, that trendline is actually very important. It is produced from the peak of December 2014 and the peak from March 2017. You can see that price has CLEARLY been responding to it (pink circles), and we've only just started to interact with it in September of last year. So, you can see that price is breaking down below it, and that also is a pretty concerning thing to see.
So watch the bear flag. The direction of the breakout will be key in determining the next major move. Overall, a move to the bottom of the formation, around 0.16, is projected, pending a breakdown of the bear flag.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
@yoye88, actually, XRP usually goes down. So no counter trade on this one. LOL
yoye88
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@kardia, I've been watching this man's letters for 3 years and he is wrong and sometimes right. He never recognizes when he is wrong and still is the king of the cards. His last xrp post was going to the stratosphere and now it turns out. a fake who doesn't recognize his mistakes that's all
yoye88
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@kardia, Besides, time will give me the reason that we are going to climb and strong and it will not take much to happen is imminent