Six hours ago, when Ripple was trading at $2.37, I posted this:
"This is a red flag warning for XRP. On the MACD , we can see that sell side momentum is increasing, making further downside likely. Support lies at the 38.2% retrace, right around $2.13."
What happened since then? Ripple fell as low as $1.90, piercing straight through my downside projection of $2.13. However, the buyers were quick to buy the dip, as you can see by the "Bullish Accumulation" on the selloff candle. Technically, XRP is now in a downtrend. Since the all time high, it has made a succession of lower highs and lower lows, and it has formed a downtrend parallel channel. Additionally, we can see that Ripple is hanging on for dear life above the 50 EMA (in orange,) and the MACD is showing steady sell-side momentum. Looking at the volume indicator, we can see big tall red volume bars, and little short green bars — so big money sellers, and small money buyers. Obviously, the overall picture has turned short term bearish for XRP. Now, the bulls need to get above the descending parallel channel, and take out the "Previous High," to negate the downtrend. Another rejection at the top of the descending parallel channel could be disastrous for XRP.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
"This is a red flag warning for XRP. On the MACD , we can see that sell side momentum is increasing, making further downside likely. Support lies at the 38.2% retrace, right around $2.13."
What happened since then? Ripple fell as low as $1.90, piercing straight through my downside projection of $2.13. However, the buyers were quick to buy the dip, as you can see by the "Bullish Accumulation" on the selloff candle. Technically, XRP is now in a downtrend. Since the all time high, it has made a succession of lower highs and lower lows, and it has formed a downtrend parallel channel. Additionally, we can see that Ripple is hanging on for dear life above the 50 EMA (in orange,) and the MACD is showing steady sell-side momentum. Looking at the volume indicator, we can see big tall red volume bars, and little short green bars — so big money sellers, and small money buyers. Obviously, the overall picture has turned short term bearish for XRP. Now, the bulls need to get above the descending parallel channel, and take out the "Previous High," to negate the downtrend. Another rejection at the top of the descending parallel channel could be disastrous for XRP.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***