Here we have XRP/USD on the 1H chart.
XRP/USD has been trading the downside considerably after a peak ignited a correction of the 16th January. Price has recently been trading within a structure since between a side-wards resistance line, and a horizontal that has recently come into play.
Price has broken out of the side-wards support. When price was testing the support previously it was making lower highs. But on the last retest of support on January 2, it is having clear a higher high, which indicated momentum. The side-wards line is very likely to be retested as support.
I am expecting Ripple to begin an up move. Before this it's highly likely that price action will retest the side-wards resistance line as a support at 1.1230 before the up move begins.
This trade could play out in 2 ways, I have outlined these below:
-Price successfully breaks out, and retests the side-wards resistance line at 1.1230. Price then has an up move to the target zone at 1.4790.
-Price breaks impulsively to the upside. It ignores structure retesting and goes to the upside target at 1.4790.
Bare in mind, that a retest of side-wards resistance turned support makes this trade significantly more reliable.
If price retests the side-wards resistance turned support and breaks about the 20 moving average before correcting, this is an impulsive state.
I will updating this analysis if it receives more than 40 likes.
Price has perfectly fulfilled it's predicted analysis and had a retest on the side-wards resistance turned structure and then hit our target zone.
Well done to any of you guys that followed me ! :-)
- Email: Tomprotrader@gmail.com
- Telegram: @tomprotrader
Public Telegram channel: https://t.me/Tom_Pro_Trader
It's always a pleasure to read your posts and comments!