The Flight to Tokyo is on Fire! Everybody Run! RIPPLE (XRP)
Hi friends! Congratulations to my twitter followers who voted XRP, and won this weeks #CoinVote! Let's get right to it. Looking at the four hour chart, you can see that XRP's flight to Tokyo has caught on fire, and things aren't looking good. Passengers are have started screaming, but the flight attendants are telling them to remain calm. If you recall from yesterday's XRP post, titled "Quiet Ripple Packs Bags — First Class to Tokyo," I said that "if the 50 EMA is lost, and confirmed as resistance, that would be a warning signal of more downside. For now, let's sit back, and see if the MACD produces a bullish momentum bounce off of the rising green trendline" If you look closely, you can see that the 50 EMA has been broken, and a head and shoulders formation has been created in the process. On the MACD, you can see that the green uptrend has been violated, and a momentum spike was not produced. The plane is in a nosedive, and it isn't looking good for this flight to Tokyo.
As you know, I don't normally like to consider outside factors, other than the data on the charts, but BTC and LTC are soooo strong right now. I would be weary of shorting anything at this point. In fact, I'm not shorting at all. I'm only long, because they're in an uptrend. I'll take profits along the way, but I never fight the primary trend. Remember, the trend is your friend! Don't fight it. Many of the other coins have this same look though. They're rolling over, while things like BTC, LTC, and LCC make strong moves. I've taken the liberty to research this a little more. I always follow the market capitalization, and I've noticed that it hasn't fallen much, though many of the alts are rolling over. Then, I went and looked at a chart of coin dominance, and I saw the BTC dominance is on the rise, and the other coins' dominance is falling. It appears as though a rotation may be occurring, where money is being taken from the alts, and put into BTC and LTC. So the alts may remain under pressure, while BTC and LTC continue to rise. Perhaps this is the beginning of some sort of separation. It's too early to tell, but there is some evidence of that.
Anyway, we have a clear breakdown emerging now, so I want to get this out. On the downside, look for the pink trendline to act as rough support, if XRP gets down there. For educational purposes only, if you wanted to short, you could place the trade now, and the stop just above the 50 EMA. There is more potential downside, with a risk of a small loss, should XRP turn back to the upside. If we get back above the 50 EMA, it will be time to reassess the sitch. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
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-
As you know, I don't normally like to consider outside factors, other than the data on the charts, but BTC and LTC are soooo strong right now. I would be weary of shorting anything at this point. In fact, I'm not shorting at all. I'm only long, because they're in an uptrend. I'll take profits along the way, but I never fight the primary trend. Remember, the trend is your friend! Don't fight it. Many of the other coins have this same look though. They're rolling over, while things like BTC, LTC, and LCC make strong moves. I've taken the liberty to research this a little more. I always follow the market capitalization, and I've noticed that it hasn't fallen much, though many of the alts are rolling over. Then, I went and looked at a chart of coin dominance, and I saw the BTC dominance is on the rise, and the other coins' dominance is falling. It appears as though a rotation may be occurring, where money is being taken from the alts, and put into BTC and LTC. So the alts may remain under pressure, while BTC and LTC continue to rise. Perhaps this is the beginning of some sort of separation. It's too early to tell, but there is some evidence of that.
Anyway, we have a clear breakdown emerging now, so I want to get this out. On the downside, look for the pink trendline to act as rough support, if XRP gets down there. For educational purposes only, if you wanted to short, you could place the trade now, and the stop just above the 50 EMA. There is more potential downside, with a risk of a small loss, should XRP turn back to the upside. If we get back above the 50 EMA, it will be time to reassess the sitch. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
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-
Comment:
"sitch" = situation. <3
Comment:
Well, looks like BTC is reversing now too. All I know, is if BTC falls back into that downtrend channel, I'll put the bear mask on — real quick.