Looking at XRP here, and we can see that price has continued to consolidate sideways since the big February decline. We can see here that price has failed to recover above the 61.8% retrace for eight consecutive days. The 618 has acted as severe overhead resistance. Additionally, price is below the 50 day MA (in orange,) and the 200 day MA (in purple.) So, XRP is showing sustained weakness below several key levels.
However, the MACD appears to be setting up for a reversal to the upside. So, if we see a bullish MACD crossover, and price is able to close a daily candle above the 618, then we could start to see a recovery attempt. With that said, even if price recovers above the 618, it will have to contend with the 50 and 200 MA shortly thereafter.
As it currently stands, there is no real evidecne of a recovery here. The 618 continues to act as resistance, and price continues to fail at it. So, unless that begins to change, I cannot project a recovery here.
You'll notice that there is a black trendline drawn on the chart. That is the potential neckline of a possible head and shoulders pattern in development. It isn't a sure thing, because there isn't a completed right shoulder. But you can clearly see that there is a left shoulder and a head. So, if the right shoulder does complete itself, and there is a breakdown from the neckline, it could be very nasty, causing prices to fall to the 0.16 range or lower. However, that depends entirely on a sustained breakdown below the black trendline. However, just below there is a rising dashed trendline support. So, even if we saw a breakdown of the black trendline, price could catch some support on the rising dashed red trendline. If that falls though, I think the selling could get pretty intense, as traders come to the realization that the prophesied moonshot isn't happening.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
However, the MACD appears to be setting up for a reversal to the upside. So, if we see a bullish MACD crossover, and price is able to close a daily candle above the 618, then we could start to see a recovery attempt. With that said, even if price recovers above the 618, it will have to contend with the 50 and 200 MA shortly thereafter.
As it currently stands, there is no real evidecne of a recovery here. The 618 continues to act as resistance, and price continues to fail at it. So, unless that begins to change, I cannot project a recovery here.
You'll notice that there is a black trendline drawn on the chart. That is the potential neckline of a possible head and shoulders pattern in development. It isn't a sure thing, because there isn't a completed right shoulder. But you can clearly see that there is a left shoulder and a head. So, if the right shoulder does complete itself, and there is a breakdown from the neckline, it could be very nasty, causing prices to fall to the 0.16 range or lower. However, that depends entirely on a sustained breakdown below the black trendline. However, just below there is a rising dashed trendline support. So, even if we saw a breakdown of the black trendline, price could catch some support on the rising dashed red trendline. If that falls though, I think the selling could get pretty intense, as traders come to the realization that the prophesied moonshot isn't happening.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-