XRPUSD, Forming Triangle Before A Breakout Can Take Place!

Hi my friends,

Welcome to this update-analysis where we are looking at XRPUSD 6-hour timeframe perspective, XRPUSD is beginning to show really interesting signs the last times as the left should and head of the inverse head and shoulder already formed as mentioned it is now penetrating the neckline several times and forms another meaningful formation in this level determining next outcomes in the structure. The pullback which XRPUSD was supposed to do to form the right shoulder has shown up with an immediate reaction in the range showing volatility to the upside, sometimes this can take place in a head and shoulder development as it shows more strength and also forming the shoulder into the other formation giving more possibility for a breakout, in this case, I detected all the important levels and likely scenarios we should consider at the moment.

Structural Developments and Formation:
Looking at my chart you can watch this ascending-triangle-formation XRPUSD is forming here marked in orange with the redlines, this formation has formed properly above the 30-EMA in blue which is an important EMA in this structure holding the bullishness to the upside, furthermore, we have seen the neckline marked in red been severely penetrated by the triangle upside moves which is overall a good bullish sign that the neckline will be broken with a decisive volatile breakout sooner or later. Also, the fact that XRPUSD is building this formation rightly above the volume profile zone makes it certainly more bullish than bearish because even when bearish pressure enters the market again XRPUSD will have a hard time to move below the level again.

Likely Outcomes and Trading Plan:
The next times we can expect XRPUSD to continue with its formation development where a test of the lower boundary from the triangle matching with the 30-EMA is likely, when this lower boundary holds anew this can form the origin fo the decisive breakout above the upper boundary and above the neckline, when this shows up properly it can provide the entry setup with the confirmation. The whole mechanism can be traded either aggressively with immediate entry or conservative with entry after confirmation, although the immediate entry is also possible here the conservative one will be much smarter, traders have to decide according to individual risk-preferences.

In this manner, thank you for watching, good day my friends, and support for more market insight.
"Good luck is when opportunity meets preparation."

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

Comment:

Initial Analysis: