Yesterday we conducted an analysis of this market. And despite the big probability of squeeze in the .460 area, the market reacted to Bitcoin movements and rushed down.
We noted the presence of an area between .357 and .432 with missing volume. The presence of such areas does not always mean that the price should go there, but with the accompanying market situation this behavior is legal.
However, at the moment we have support consisting of 3 parts:
* The Fibonacci level of .236 for the price of .391 is a key level, breaking through which will confirm the medium-term bearish sentiment in this market.
* Daily MA99, which is currently touching the price
* The border of large volume .405, which to some extent can keep the market from falling
Bullish scenario
Is spike of the .400 level with the hold of the .390 level and quick squeeze to the levels of .450 will be a signs of strength in this market.
And the current price actions are perceived as a simple ABC correction.
Bear scenario
This is a breakdown of the .390 level with a large volume, which ultimately will lead the price to the level of .320 with small price rebounds in the area .347
Bottom line
In this case, as we have seen, the market responds to the crypto leader Bitcoin. And this is exactly the case that you do not trade Ripple, you trade Bitcoin.
If the main currency decides to test levels of 6k and below - nothing will keep this market from falling.
If Bitcoin finds support around 6,200, this market will follow and sellers will regret selling their positions.
We noted the presence of an area between .357 and .432 with missing volume. The presence of such areas does not always mean that the price should go there, but with the accompanying market situation this behavior is legal.
However, at the moment we have support consisting of 3 parts:
* The Fibonacci level of .236 for the price of .391 is a key level, breaking through which will confirm the medium-term bearish sentiment in this market.
* Daily MA99, which is currently touching the price
* The border of large volume .405, which to some extent can keep the market from falling
Bullish scenario
Is spike of the .400 level with the hold of the .390 level and quick squeeze to the levels of .450 will be a signs of strength in this market.
And the current price actions are perceived as a simple ABC correction.
Bear scenario
This is a breakdown of the .390 level with a large volume, which ultimately will lead the price to the level of .320 with small price rebounds in the area .347
Bottom line
In this case, as we have seen, the market responds to the crypto leader Bitcoin. And this is exactly the case that you do not trade Ripple, you trade Bitcoin.
If the main currency decides to test levels of 6k and below - nothing will keep this market from falling.
If Bitcoin finds support around 6,200, this market will follow and sellers will regret selling their positions.
Comment:
Ripple followed one of our scenarios. Despite a deeper dive the price rised to consolidate above the psychological level of .400, which is now to be maintained.
The price action from .376 was quick and was supported by good trading volume. What tells us that this market is not ready to just fall to the .320 level.
However, now the price has to prove its strength by breaking (or not) the main bearish trend line of this correction.
Setting goals for future peaks of the waves is quite difficult here, since the price will make actions that are illogical for most market participants to shake weak hands and strengthen the FOMO.
Bottom line
Given all the features of this movement, it is too early to sell positions and give up. The Daily Stoch is at the bottom, the crowd learned the lesson of pain yesterday and it seems the market is ready to move higher.
The current impulse can be the 1st local wave from the 1st wave of the 3rd global wave (1-1-3) if we can breakout bearish trendline.
The price action from .376 was quick and was supported by good trading volume. What tells us that this market is not ready to just fall to the .320 level.
However, now the price has to prove its strength by breaking (or not) the main bearish trend line of this correction.
Setting goals for future peaks of the waves is quite difficult here, since the price will make actions that are illogical for most market participants to shake weak hands and strengthen the FOMO.
Bottom line
Given all the features of this movement, it is too early to sell positions and give up. The Daily Stoch is at the bottom, the crowd learned the lesson of pain yesterday and it seems the market is ready to move higher.
The current impulse can be the 1st local wave from the 1st wave of the 3rd global wave (1-1-3) if we can breakout bearish trendline.
Comment:
Bullish trend confirmed - this correction analysis closed.
* Level .390 holds
* Confirmation level for bulls .428
* First resistance for bull market .452