When I look at channels in markets, I assess the touches on the upper and lower of the channel, like most analysts do. However, I pay special attention to the action around where the midline of the channel is. That helps me validate channels, especially if they are somewhat difficult to discern, such as the channel on this XRP chart. When we apply that logic, and look at the midline of this channel (pink dashes,) it becomes abundantly clear that XRP has had a plethora of interactions with it (pink circles.) The fact that XRP has had so many interactions with the midline of this channel, proves that it is undoubtedly in an . Moreover, this channel has been in the making during the entire existence of XRP. The reactions to the top and bottom of the channel are also very clear, further adding to the validity of the formation.
So, without a doubt, XRP is in one of the largest uptrend channels known to man. Now, whether or not this channel will continue to hold, is anyone's guess. However, given the incredibly strong fundamentals of XRP, I think the token is most likely at a major discount right now, and I believe that the most likely outcome is that XRP will hold the bottom of this channel and begin to move higher. Admittedly, that is an assumption, and as technical analysts, we have to watch for price to continue to show us that it's holding the bottom of the channel. Because, just as XRP could hold here and blast off, it could also break the channel and collapse.
Looking at the current price action, we can see that XRP is currently holding around the exact bottom of the channel. Additionally, we can see that XRP is holding around a major lateral (in green.) Looking back to 2017, we can see that there was a very similar lateral , which also interacted with what is now the bottom of the channel. Price clearly entered a parabolic explosion shortly after that convergence of support. With that said, we all know that history doesn't always repeat itself — but it does often rhyme. Until I see a confirmed breakdown of this , I believe that the most likely technical direction from here is to the upside. In fact, I will even venture to say that if XRP holds this channel, the XRP bear market has just ended. =D
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***