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.***
Thanks for the analysis. Is it too simplistic to think that XRP would just follow the sentiment of BTC? I think you have BTC headed for a lower low in your analysis. Are there factors that would have XRP doing something contrary to BTC?
befunkt
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@nerenai, Alt-coins/ETH/LTC break from the wake of BTC all the time (albeit briefly), and those are fine times to make money. =) Take Litecoin for example. If LTC broke through the downtrend today well before BTC was in position to do the same, that would have changed the game for LTC and put them in a much more powerful position across the entire market. Not like up to Bitcoin's market cap, but it would be good-old-trusty-LTC for years to come. It would be a divergence in psychology. (i personally have half my BTC fund sitting in LTC right now) xD
Also if you trade less often, like once a month or less for example, then you probably have less need to analyze the price action and indicators of each coin individually.
And... we get to learn more when MPC does more analyses. ;)
AntonioTuasonAdaya
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Thanks so much. I've been reading all your post, it is so informative keep it up and can you post analysis on Lumen/Stellar (XLM)?
hardeight
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Poop, thanks for another chart...favor? Can you hit XLM....thanks again
ss44
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@MagicPoopCannon Always impressed with your TA's. Noticed you favor the 4 hour over the daily MA's, any reason for that?
Be77ni
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get out of here with ripple you poop , litecoin man