Ripple continues to dazzle making new highs and completing Wave 5 of the impulse of its respective Elliott Wave. Though momentum seems strong as indicated by the Kovach Momentum Indicators, and the fact that we’ve been testing the upper bound of the KRI for some time now, some retracement is inevitable as we enter the corrective phase. The nested Fibonacci level of $2.50 is likely to provide some resistance as it is psychologically significant as well. We have $2.26 providing support as well, and very strong support at $1.83 or so, where a Fibonacci level coincides with a nested Fibonacci level.
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If we break 2.80-2.90, momentum forward? Or do you feel we dip down into 2-2.40 support before tomorrow? Seems to be lingering around the 2.80 and has been for a while now. Tough call to make, want sell now and buy back in on a dip, but can't seem to place when and where the dip will occur!
Thanks for the analysis man, great work!
quantguy
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@skychall, Thanks for your interest in my work! At this point, I would not get in the way of XRP, although I definitely feel it is a great time to take profits. There does seem to be a large buy-side imbalance still, so any sell orders are getting gobbled up quickly. It is likely to have resistance at 2.87, a Fibonacci Extension level, and a retracement to 2.50, a Fib level and psychological level is likely, but again, the momentum here is unprecedented.
@xrp67, Exactly, no matter how strong the momentum is, it must eventually let up. We are due for a corrective (ABC) phase
xrp67
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@quantguy, I am a noob, I can see that you had 1 day time frame and the correction phase lasted about 3 days with about 43% drop. Would you say that the pattern can be repeated? Again I am just learning
quantguy
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@xrp67, No worries! This is a great chance to learn. Sure, that level of retracement is always a possibility. Typically on the corrective phases, the price will touch a major Fibonacci Level before buyers and sellers decide if that is a fair price or not. Typically, with the crypto market in the state it is in, this corrective phase doesn't last long and buyers seize the opportunity to get a good price
xrp67
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@quantguy, Thanks a lot. I am familiar with the Fibonacci levels and the possibility to bounce on one of them! Last question, if you are day trading which time frame you use and what indicators?
quantguy
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@xrp67, I trade at 1 day, 4 hour and 30 min charts, and although I realize it sounds 'scammy', the only indicators I use our my own. You can check them out for free for one month at quantguy.net
Ishikura_Masaki
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@quantguy, Would you say that a re-touch of the $1.3 level is highly unlikely at this point?
quantguy
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@Ishikura_Masaki, not *highly* unlikely, but the Fib level at 1.83 is much more viable and there is a lot of congestion around this area from late December. 1.3 would definitely be a steal at this point
Thanks for the analysis man, great work!