XRPUSD: Market Overview and How to Trade

The price dropped below the bottom of the horizontal price channel. It gave us a strong bearish signal.

If we look at positions of Moving Average 100 and Moving Average 200, we are in the downtrend.

The price bounced from 0.200000 support zone. RSI confirmed the price reversal. The same goes about MACD histogram, which also confirms the upward movement. MACD lines give us a bullish signal too.

DMI confirms the bearish trend, but ADX line starts falling. It is a signal that sellers are not so active.

Based on all these signals, we have the bearish market, which bounced from the strong support zone at the round number, and it is going to move upward. Can we talk about the trend reversal? No. Can we talk about a correction movement? Yes.

As the market reached the solid round number level, it is possible to buy based on the current prices. It is possible to open buy trades using this reversal only if you are ready to build long term positions. It is very important to follow proper money management.

The market can move lower. For this, the price will have to break the local uptrend line and move below the previous swing low at 0.200000.

For confirmation the upward movement and the trend reversal, the price will have to break resistance zones. SMA100 and 0.250000 resistance form the 1st zone. The 2nd zone is between SMA200 and 0.300000 resistance. Only after that, we will be able to talk about a new uptrend. The breakouts can be used for adding more trade volume to your previous long positions or just for buying.