Hi friends! Welcome to this update analysis on Ripple! Looking at the four hour chart, you can see that XRP temporarily traded above the blue resistance level, but was stopped dead in it's tracks by the 200 EMA (in purple.) Since then, XRP has reversed to the downside, back below the rising blue trendline, and is now moving in to test the 50 EMA as potential support. This will be a key development to watch, since the 50 EMA has been a ceiling for XRP since the all-time highs. If we find support there, that will be a very positive sign for XRP, and it could easily trade higher, to retest the 200 EMA. Another interesting thing to point out, is that the 50 EMA is beginning to curve to the upside, which hasn't been done since the all-time high. Additionally, we can see that XRP actually made a higher high — another first, since the all-time high. I can tell that things are beginning to change in XRP, and it appears as though the market is trying to bottom around here. Looking at the MACD, you can see that it has produced a large bullish divergence, which is indicative of an ongoing shift in underlying momentum. Bullish divergences are often precursors to explosive rallies, and the crypto space is filled with them right now. I also see a possible inverse head and shoulders pattern forming, but we will have to see if the right shoulder is completed. Interestingly, if the 50 EMA is held as support, it would likely create the right shoulder, and complete the pattern. Before we jump to any conclusions though, we need to just sit back, and watch to see how XRP reacts to the 50. A break back below it, could be very negative, and it could send XRP tumbling to the 78.6% retrace, or lower.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-