Last week has witnessed Ripple on a roller coaster of emotions. It started the week of a wild 28% gain in three consecutive trading sessions then declined dramatically 4 days after. Some began to call for Ripple moon run whilst others calling yearly low again. Putting aside all talks, the coin is winding up serious setup for the next bull run.
Technical analysis:
Ripple has escaped critical support spectacularly, stopping at 32.7 cents. Our original call was that Brad Garlinghouse’s favorite would range sideways in two ranges before elevating. However, the market consolidated in range 1 for only one day, rapidly broke through range 2 and hit short-term resistance. Well, that was quick!
Albeit Ripple’s wild short-term run, we still keep our original call. Price action is likely to consolidate within range 2 in the next few days or even a few weeks. This is the result of correction move since last week’s volume was booming. Range 2 will also mark a short-term ranging market as the market possibly reaches equilibrium with dried out liquidity and low volatility.
On the other hand, the last wild run pointed out our interim first wave. It is plausible that Ripple has finished its A-B-C correction pattern at the time of writing, which is our interim second wave. This A-B-C pattern clearly forms in a descending triangle within 4 hour chart. As tight consolidation within range 2, we expect that our interim third wave starts in the next few days and slowly develops within this range. Below is 4 hour chart in linear scale:
At the bottom of patience, one finds heaven:
Looking at a broader view, Ripple has been through 367 days of broad range consolidation. Within that 1 year of broad ranging market, the coin has also undergone 272 days of tight range consolidation. When Bitcoin bullishly ran from 3k to 14k, we had expected that Ripple would follow; alongside with Ethereum and Litecoin. But low capital inflow resulted Ripple to significantly underperform with only 60% gain at the time of Bitcoin hitting 14k.
Ripple is relatively “cheaper” than other Big 5 (Top 5 MCap coins) since price at writing time still hovers around critical support. Meanwhile, Bitcoin, Ethereum and Litecoin still enjoy +200% gain. Nevertheless, Ripple slowly attracts capital inflow since last seven trading sessions witnessed liquidity higher than volume’s MA20 (volume’s moving average in 20 days). The first time in 1 month! Below is 1 day chart in log scale:
Accumulation strategy:
Like a coil spring that is ready to be released, Ripple is setting up for a serious unicorn move. Who knows where it could head to but there is one thing we know, that is accumulating Ripple. Critical support once was a slimline boundary to lower support now became such a potential zone to pile up your stack.
Some people still call 20 cents. Possibly! When Bitcoin hit 7.4k on 4th of Dec last year and undertook 2 months of hovering around 6k critical support, it dipped to 3.1k. However, it's not about which level the price will fall, it's portfolio management and discipline.
Catching bottom requires years of experience, courage and sometimes luck. One common tactic can be used is 30/30/40. That is accumulating 30% of our disbursement on the highly liquid price-falling trading session. The next 30% applies the same tactic and the last 40% goes to clear trend-reversal trading session.
“Be fearful when others are greedy. Be greedy when others are fearful.” - Warren Buffet
Technical analysis:
Ripple has escaped critical support spectacularly, stopping at 32.7 cents. Our original call was that Brad Garlinghouse’s favorite would range sideways in two ranges before elevating. However, the market consolidated in range 1 for only one day, rapidly broke through range 2 and hit short-term resistance. Well, that was quick!
Albeit Ripple’s wild short-term run, we still keep our original call. Price action is likely to consolidate within range 2 in the next few days or even a few weeks. This is the result of correction move since last week’s volume was booming. Range 2 will also mark a short-term ranging market as the market possibly reaches equilibrium with dried out liquidity and low volatility.
On the other hand, the last wild run pointed out our interim first wave. It is plausible that Ripple has finished its A-B-C correction pattern at the time of writing, which is our interim second wave. This A-B-C pattern clearly forms in a descending triangle within 4 hour chart. As tight consolidation within range 2, we expect that our interim third wave starts in the next few days and slowly develops within this range. Below is 4 hour chart in linear scale:
At the bottom of patience, one finds heaven:
Looking at a broader view, Ripple has been through 367 days of broad range consolidation. Within that 1 year of broad ranging market, the coin has also undergone 272 days of tight range consolidation. When Bitcoin bullishly ran from 3k to 14k, we had expected that Ripple would follow; alongside with Ethereum and Litecoin. But low capital inflow resulted Ripple to significantly underperform with only 60% gain at the time of Bitcoin hitting 14k.
Ripple is relatively “cheaper” than other Big 5 (Top 5 MCap coins) since price at writing time still hovers around critical support. Meanwhile, Bitcoin, Ethereum and Litecoin still enjoy +200% gain. Nevertheless, Ripple slowly attracts capital inflow since last seven trading sessions witnessed liquidity higher than volume’s MA20 (volume’s moving average in 20 days). The first time in 1 month! Below is 1 day chart in log scale:
Accumulation strategy:
Like a coil spring that is ready to be released, Ripple is setting up for a serious unicorn move. Who knows where it could head to but there is one thing we know, that is accumulating Ripple. Critical support once was a slimline boundary to lower support now became such a potential zone to pile up your stack.
Some people still call 20 cents. Possibly! When Bitcoin hit 7.4k on 4th of Dec last year and undertook 2 months of hovering around 6k critical support, it dipped to 3.1k. However, it's not about which level the price will fall, it's portfolio management and discipline.
Catching bottom requires years of experience, courage and sometimes luck. One common tactic can be used is 30/30/40. That is accumulating 30% of our disbursement on the highly liquid price-falling trading session. The next 30% applies the same tactic and the last 40% goes to clear trend-reversal trading session.
“Be fearful when others are greedy. Be greedy when others are fearful.” - Warren Buffet
