Ok so, mixed feelings about this. It seems as if I made this analysis right in the middle of the action. First off it's important to note that while the overall main formation (channel) is still positive – this one may not be. I have kept the chart in 'weekly' because the trade volume is low and the performance pretty volatile, which makes the 'daily' simply not suitable for this analysis.
The facts:
– XRP is in a 'wedge'. I could say 'rising wedge' but the angle is so shallow which means it's 'level' (rising is better). In addition it's always important to favor the 'inner' over the 'outer' of any given formation. In this case they are both almost perfectly aligned witch is great.
– Exit at the bottom of the wedge instead of the top is considered very bearish
– The downward exit has traveled farther than the prior PSAR series by quite a bit, which is a second major bear indication
– RSI is at 42 which is low (50+ would be better)
– MACD could take a good turn (neutral)
– ADX DI actually looks great at this point and suggests a "possible" breakout in either direction
– Last but not least could be a good thing. The exit triangle (still forming) is half inside the wedge which "could" (with quotes!) be a bear trap leading to an upward breakout, but I would not bet on it!
– I've added two safety levels for you to measure (dashed red). 1st has still some risk attached, 2nd is safe to trade.
Conclusion:
Let me be honest with you here. I have no position in XRP. I would love to see this soar high simply because everyone is so enthusiastic about it. To sum this up from my personal experience I can say the following. What you're looking for is a breakout above the triangle (blue) as displayed with blue arrows. Please be reminded that this wedge and exiting triangle are right at the lower channel trend line, and a downward breakout outside of the channel could mean much lower levels (from 0.13 all the way down to 0.05). Having said that, the triangle has started very well and could indeed mean an unexpected upside surprise for everyone. As per this week's performance you can expect it does go as low as 0.25 (or as low as 0.24) from current levels.
I will keep checking back on it and if necessary I'll update new findings.
Be safe
The facts:
– XRP is in a 'wedge'. I could say 'rising wedge' but the angle is so shallow which means it's 'level' (rising is better). In addition it's always important to favor the 'inner' over the 'outer' of any given formation. In this case they are both almost perfectly aligned witch is great.
– Exit at the bottom of the wedge instead of the top is considered very bearish
– The downward exit has traveled farther than the prior PSAR series by quite a bit, which is a second major bear indication
– RSI is at 42 which is low (50+ would be better)
– MACD could take a good turn (neutral)
– ADX DI actually looks great at this point and suggests a "possible" breakout in either direction
– Last but not least could be a good thing. The exit triangle (still forming) is half inside the wedge which "could" (with quotes!) be a bear trap leading to an upward breakout, but I would not bet on it!
– I've added two safety levels for you to measure (dashed red). 1st has still some risk attached, 2nd is safe to trade.
Conclusion:
Let me be honest with you here. I have no position in XRP. I would love to see this soar high simply because everyone is so enthusiastic about it. To sum this up from my personal experience I can say the following. What you're looking for is a breakout above the triangle (blue) as displayed with blue arrows. Please be reminded that this wedge and exiting triangle are right at the lower channel trend line, and a downward breakout outside of the channel could mean much lower levels (from 0.13 all the way down to 0.05). Having said that, the triangle has started very well and could indeed mean an unexpected upside surprise for everyone. As per this week's performance you can expect it does go as low as 0.25 (or as low as 0.24) from current levels.
I will keep checking back on it and if necessary I'll update new findings.
Be safe
Comment:
*expect it to go as low ...
Comment:
Those on the safe-side of the trade will wait until 2nd safety line has cleared.
Prepare to short if it drops below 0.234.
Prepare to short if it drops below 0.234.
