VincePrince

Here Is Why A 50%-Drop Within XRPUSD Is Still Possible!

POLONIEX:XRPUSD   XRP / U.S. Dollar
Hi my friends,

Welcome to this analysis about XRPUSD, we are looking at the 3-day timeframe perspective. Since XRPUSD completed the breakout above the neckline and validated the head-and-shoulder-formation to show up with greatly exaggerated upside-volatility move through several resistance-zones and testing the major upper-resistance it has now formed a decisive formation which is likely to be the determining source upcoming times and possible to develop the major reversal here, actually, the structure has some important similarities with Bitcoin as I discovered Bitcoin has also drop possibilities to previous supports support by the volume profile however there are also fundamental divergences within XRPUSD which are necessary to look at, therefore I detected all the important zones and likely outcomes we should consider with XRPUSDs developed structure.

As when looking at my chart we can watch there how XRPUSD is now holding above this meaningful trendline marked in dashed grey in my chart which was already tested severely, now the next times we can expect some up moves from here however these up moves will run directly into the strong-upper-resistance marked in red in my chart where XRPUSD has also this considerable short-entry-zone, when this resistance shows up with a strong bearish pullback this will be crucial because when the pullback moves below the dashed trend-line a bearish continuation is likely especially because XRPUSD has this low-volume-zone within the volume-profile where the price advances fastly as there is no volume to stop the bearish price action. This firstly ends within the neckline established by the inverse head-and-shoulder-formation.

Also when looking at the indicator-situation XRPUSD is still in a highly overbought situation with several indicators showing these reversal signs as one of them is marked in my chart which is the stochastic RSI it is showing an indication for a bearish reversal as the K-line crossed the D-line already to the downside. Taking all these significant factors into consideration XRPUSD will face major tests over the next times and when the suggested circumstances show up as expected with XRPUSD moving below the levels this can lead to a sharp drop of almost 50% downside possibilities, this is why we need to prepare on it to take appropriate action when these devastating scenarios show up and to do not overspeculate the market only into the bullish direction. When XRPUSD shows up with such price-action and finally moving into the neckline again this does not mean XRPUSD is bearish forever mainly within the neckline there can establish a reversal with potentials to test upper resistance-zones anew.

In this manner, thank you for watching the analysis, have a great day and weekend, all the best!
"Prospect is the ingredient of good fortune."

Information provided is only educational and should not be used to take action in the markets.
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