XRP or RIP - Monthly bearish engulfing

48+ hours to go until the month end, however if price action does not dramatically improve in those remaining hours then the months ahead for XRP are very bleak. Some observations on the monthly chart above:

1) A bearish engulfing candle is forming. Price action must close above 24 cents to cancel out the bearish engulfing formation.

2) If (1) is confirmed, the next price action support is a 96% drop away to $0.007 cents, the 2017 lows.

3) Price action has fallen through the 21-month and 30-month moving averages - very bearish.

4) Monthly Stochastic RSI (circled in black) is crossing down. This is as bearish as it gets. Monthly cross overs are powerful.

XRP has 48 to turn it around, time will tell.

Comment:

Unfortunately for the bulls price action closed with a bearish engulfing candle for the month of December.

Is it possible price action recovers? Absolutely. For the month of January price action must close above 30 cents.

Is it probable price action recovers to 30+ cents? No. Look at the facts of the chart. As per point (3) & (4) above together with the monthly bearish engulfing candle makes falling price action almost certain.

Ultimately the trade taken now is price action may climb to 30+ cents or it may fall all the way to 1 cent. Risk / reward is unacceptable.

Comment:

XRP holders pay attention as to how this weekly candle closes tomorrow. A close under the yellow line, the 21-week EMA, would be devastating for price action. Take note, the Stochastic RSI is below 20 = momentum is all but gone.

Comment:

Not good for the near term. The weekly candle closed under the 21-week moving average. That is bearish. The only price worth watching now, 17 cents. If you see it broken on the weekly then market structure has failed. The risk of a drop to 2-3 cents becomes highly probable.

The positive is price action remains in an uptrend. Watch the 17 cent mark.

Comment:

Price action continues to look ominous with a weekly candle body closing under the 50-week moving average (green line).

Comment:

An update to the top monthly chart - currently price action remains under the 30-month (red line) moving average. The bulls do not want this month to close under the 30-month EMA - it would be the end for XRP if the BODY of the candle closes here.

In just little over 48 hours a new monthly candle will be printed. If price action is not above 30 cents by then, consider you exposure to this asset.

Comment:

We're bullish now after this pump? No. Look left..

The monthly candle closes at previous resistance. The price action remains bearish.

Comment:

What a battle - the bulls deserve to win this one.

Price action continues to be squeezed between resistance and the 46 month moving average.

There is positive news for the bulls, however. Circled in orange below you can see the monthly Stochastic RSI pointing upward - that is very bullish.

Whatever breaks first, 1) price action resistance or 2) 46 month moving average; the move will not be boring. Imagine a spring under compression, it is about to be released.

Trade closed manually:

An there she blows. That compression did not disappoint ;)

Well done to the bulls.