Hi friends! Let's take a look at Ripple! Looking at the four hour chart, we can see that the bear flag
pattern did break down, but prices did not immediately plummet. We can see that after the breakdown occurred from the bear flag
, taking XRP below the neckline support/resistance
level, XRP has curled back up to test it. What you are witnessing, is the act of confirmation. XRP has broken below support, and now it is testing it, to define it as resistance. Interestingly, we can see that several resistance levels are all converging above XRP at the moment — the neckline of the head and shoulders
pattern (black trendline
,) the 200 EMA
(in purple,) and the 50 EMA
(in orange.) When such convergences materialize, they increase the likelihood that support or resistance will hold. With that being said, if the bulls manage to explode above all three, that would be a great short-term victory. Looking at the volume
indicator, we can see that it is very low, proving that traders understand that this is a moment of uncertainty in XRP. Everyone is waiting on the sidelines, until XRP makes a decision on which way it wants to break. At the moment, the bears have the edge, because a breakdown has occurred from the bear flag
, and it has pushed prices below key levels. Looking at the MACD
, we can see that it is really starting to flatten out, as the indecisiveness carries on. All-in-all, mixed signals are starting to develop in the crypto space. I'm seeing some bullish
reversals, and some bearish
continuation moves. I think this is a point where it's best to sit back, watch the market, and let it decide which way it wants to go.
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.***
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