Looking at the daily XRP chart, you can see that I have most of the price action drawn inside of a blue . Now, a lot of people will probably criticize the way the bottom blue is drawn, because it only made contact with one swing low in August of 2018. However, let me explain WHY this needs to be drawn this way. Looking at the left side of the chart, you can see that there was an area of strong overhead resistance, just before XRP skyrocketed to it's all time high. There were several occasions where price attempted to break out above that resistance (blue downward arrows.) Just look at how price reacted to it. That level was severe overhead resistance, and when XRP finally got above it, faces were absolutely melted.
After XRP reached it's all time high, we can see that price returned to that EXACT SAME (first blue upward arrow.) Since then, XRP has been chopping around above that , in a way that has created a . So, I do think there could still be some more downside for XRP in the short term, which would likely bring XRP down to the bottom of the . From there, I would like to see a hold on the bottom of the . That would be massive confirmation that we are in a big pattern — which is for those who don't know.
Now, I've shown in a recent analysis how the current is rising in a way that is identical to how the behaved in 2016. There is a clear on the , showing us that the sell side pressure has been falling since mid 2018. Furthermore, when we look at the graph, we can see that in September of this year, XRP broke out above level of accumulation at XRP's all time high (red .) Since then, accumulation has been rising rapidly, while price has continued to fall. This is also a clear to price.
As you can see, price could continue to oscillate inside of this formation. I've illustrated that with arrows that show hypothetical future price movement.
Here is where this analysis gets extremely interesting. To calculate an upside target for a breakout, you take the height of the (dashed blue vertical ) and add it to the potential breakout area of the formation. That suggests a price target near 1.00. I have taken my tool and measured the low from the bottom of this pattern, to the 1.00 area, and the 61.8% retrace corresponds EXACTLY with key swing highs and lows, as you can clearly see on the chart. That is incredible technical symmetry to say the least.
We still don't really know how price is going to respond, and it isn't wise to trade a pattern before the actual breakout. In the long run, trading breakouts will increase your likelihood of success. That's not financial advice. It's simply my opinion on how to trade effectively.
Please keep a close eye on this pattern. It could turn out to be the most important feature in XRP.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
"One thing suggests this, another suggests that. This one weighs more heavily, so I'll go with that one"
Something like that.