The sell off in XRPUSD (Ripple) after it reached a high of ~$3.30 on Jan. 4, 2018 is captured in the chart by the bearish trendline.
The curved light blue line on the chart is used to show the bottoming action in the price of Ripple. This indicates that the price of Ripple will resume a bullish trend or price swing upwards albeit temporarily.
If Ripple fails to hold at its current price of ~$0.89, it could easily sell off to the region of Support 1 (between $0.67 and $0.79). If this fails to hold then Support 2 could likely be tested i.e. price could sell off to about $0.40 - $0.53.
In order to place a buy order, I would like to see Ripple capture the $1.08 area which I have marked as a great POE (Point of Entry) into a bullish trade. In that case, Target area 1 or Target area 2 would be great as areas to take profit.
Target area 1: $1.70 - $1.76
Target area 2: $2.07 - $2.20
In either case, stop loss can be placed just below $0.87 for the IDEAL entry at $1.08. Using this should provide a risk/reward ratio of at least 3:1 with Target area 1 or 2 used as the point to take profit.
The curved light blue line on the chart is used to show the bottoming action in the price of Ripple. This indicates that the price of Ripple will resume a bullish trend or price swing upwards albeit temporarily.
If Ripple fails to hold at its current price of ~$0.89, it could easily sell off to the region of Support 1 (between $0.67 and $0.79). If this fails to hold then Support 2 could likely be tested i.e. price could sell off to about $0.40 - $0.53.
In order to place a buy order, I would like to see Ripple capture the $1.08 area which I have marked as a great POE (Point of Entry) into a bullish trade. In that case, Target area 1 or Target area 2 would be great as areas to take profit.
Target area 1: $1.70 - $1.76
Target area 2: $2.07 - $2.20
In either case, stop loss can be placed just below $0.87 for the IDEAL entry at $1.08. Using this should provide a risk/reward ratio of at least 3:1 with Target area 1 or 2 used as the point to take profit.