Ripple (XRP) Needs This Break Out Then Next Destination Is $5

Falling wedge:
The price action of Ripple is moving in a falling wedge pattern since August 2018. Recently after the strong bearish trend in the month of March 2020 the priceline of XRP again has hit at the support of this falling wedge pattern. Here I was waiting for two indicators to give bullish signals. One from stochastic to give bull cross and second for the momentum indicator to turn weak bearish from strong bearish after these two signals I was expecting that the priceline will again move up to make another attempt to break out the resistance of this falling wedge pattern.
Finally on 6th of April the stochastic gave bull cross and on 27th of April the momentum indicator turned weak bearish from strong bearish and then the priceline of Ripple turned bullish and sofar it has reached almost at the half of the wedge pattern.
Here we can observe one more thing that the relative strength index ( RSI ) indicator 1st went in oversold in January 2020 and in the month of March it went again very close to the oversold zone and now it has turned bullish . And if we see the priceaction of XRP then it can be easily seen that the priceline has also formed a double bottom as well that is another very powerful bullish sign.

Indicators are turning bullish:

falling wedge:

Volume profile and Bollinger bands are giving bearish signals:
If we see the two more signals on this weekly chart then the situation is little bit disappointed. If we see the volume profile of the complete price action moving within the pattern then it can be easily witnessed that the trader’s interest is very weak below $0.17. And if we move up then we find that the interest of the traders is very low above $0.33, this is almost the same level where we have the resistance of the falling wedge pattern. Therefore in order to have a break out from the wedge we need the interest of the traders should be developed above the level of resistance, moreover if we see the Bollinger bands then it can be easily observed that the upper band of Bollinger bands is below the resistance of this falling wedge pattern. Therefore it can play a role of resistance or hurdle for the priceline that can stop the XRP to break out the resistan. Therefore in order to achieve a successful breakout from this pattern we need the Bollinger bands to move above the resistance of Wedge . However if exceptional we will have a powerful buying volume then the Ripple can ignore these signals and breakout the resistance.

Simple moving averages and bearish signal on daily chart:
Now if we switch to the short-term daily chart and place simple moving averages with the time period of 25, 50,100, and 200 then we can see that since 14 March to 29th of April the priceline was moving up with a strong bullish rally and first the price action broke out the 25 SMA after that priceline faced a little bit resistance but finally broke out the 50 simple moving average . And during this the we can also watch the golden cross formation between 25 and 50 simple moving averages. Then on 29th of April the price action of Ripple broke out the 100 SMA but since then the price action is not able to break out the 200 simple moving average . And it is being consolidated between 100 and 200 simple moving averages. And now there is bearish signal appeared and that is on 30th April a powerful bearish engulfing candlestick is appeared that is a bearish signal. This candlestick has completely in engulfed the bullish candlestick of 29th April. Therefore in order to break out the 200 simple moving average we need another powerful bullish engulfing candlestick that should engulf the bearish engulfing candlestick of 30th April or at least it should be equal to this bearish candlestick . Then this bearish candlestick will be cancelled. But unfortunately sofar after that bearish engulfing candlestick we have a two weak bullish candle sticks and and today we can see a weak bearish candlestick as well.

Up channel:
On the same daily chart the priceline of Ripple is moving within an up channel since 17th of March. At this time the price action has reached at the resistance of this channel but could not break out this resistance even after powerful bullish candlesticks with long spikes and now we have few weak bullish candles moving sideways. Here I am watching for two more indicators one is stochastic indicator another one is the momentum indicator .The stochastic indicator has already visited the overbought zone and it has given bear cross. Now if with this bear cross of stochastic indicator the momentum will be turned weak bearish from strong bearish then we can expect that the priceline may re-test the support of this channel and that is at $0.20. I am not expecting as that much powerful bearish move that the priceline would re-test the support of the falling wedge that has been formed on the long term weekly chart. Therefore after retesting the support of this channel the priceline may again move up to make another attempt to break out the resistance of this channel.
Up channel:

Stochastic and momentum:

Key level resistance at $0.31:
Now I would like to discuss a major key level resistance and support level for the priceline of Ripple. And that strong resistance and support level is at $0.31. If we seen on the chat then we can easily observe that since the XRP born this $0.31 has been very powerfull resistance and support level in the history of XRP. First we can see that it has been working as a strong resistance from May 2017 to December 2017. But once this resistance was broken in December 2017 then within one month upto January 2018 price action started very powerful bullish rally that produced more than 1476% gains. And reached more than $3. Then from January 2018 to August 2019 it has been working as a a strong support for the priceline but once in August 2019 this support has been broken down since then priceline could not breakout this resistance again. Therefore we can expect that once this resistance will be broken out then it can repeat the same move of Dec 2017 to Jan 2018 and produce more powerful bullish rally than bullish rally of 2017 to 2018. And this powerful bullish divergence can lead the XRP to reach $5 that will be all time high price.

On short term the Ripple is giving bearish signals therefore we can expect bearish rally on the daily chart but on the long term the XRP is bullish and once the key level resistance of $0.31 will be broken out then XRP can achieve the all time high price.

Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.

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Thanks for sharing, I see it similarly
I would sure hope it happens, I was looking at it on a much smaller timeframe and am bullish too but $5 is a bit too much for me right now:
BMLemon Trading-Guru
@Trading-Guru, I think you'll see it at 5 cents before 5 dollars. :(
+1 Reply
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