Flags and pennants are patterns that I find are overly relied upon in crypto, and they often fail. I like this forming pennant, however, when coupled with the market sentiment. In particular, XRP has been on fire and we are testing a major psychological level at $0.50. I wouldn't long resistance - But I am already in a along position since low 40s. If I wasn't, I would not enter this trade until the price breaks out of the pennant to the upside, for confirmation. A breakout could happen here, or touch the bottom of the flag once more before going back up. I will keep a close eye on XRP for a breakout, and will have alarms set.
Also my recent idea about BTC volume flow flipping in bull's favour (link below), has me thinking the market is ready to move a bit higher, and I think BTC will hold support at $20k, and move up to the next level, which will give more support to this idea. If BTC falls through $20k before this pennant breaks out, I will consider abandoning the idea altogether.
The stop loss target, set at the most recent swing low is at $44.9 and sits perfectly behind another psychological level. The target is set slightly below the pole height, at $63.8. The pole reaches a bit above $0.65, but I think it will correct hard at $0.65 or even at $0.64. Keep in mind that $63.8 is an ideal scenario where the breakout shoots almost straight up with no faltering. If we have signs of trouble along the way I will not hesitate to sell, even somewhere in the mid 50s.
I've been enjoying some market success, but I am a fairly inexperienced trader so don't go copying my trades. None of this is advice, just my idea.
Also my recent idea about BTC volume flow flipping in bull's favour (link below), has me thinking the market is ready to move a bit higher, and I think BTC will hold support at $20k, and move up to the next level, which will give more support to this idea. If BTC falls through $20k before this pennant breaks out, I will consider abandoning the idea altogether.
The stop loss target, set at the most recent swing low is at $44.9 and sits perfectly behind another psychological level. The target is set slightly below the pole height, at $63.8. The pole reaches a bit above $0.65, but I think it will correct hard at $0.65 or even at $0.64. Keep in mind that $63.8 is an ideal scenario where the breakout shoots almost straight up with no faltering. If we have signs of trouble along the way I will not hesitate to sell, even somewhere in the mid 50s.
I've been enjoying some market success, but I am a fairly inexperienced trader so don't go copying my trades. None of this is advice, just my idea.
Comment:
That was a very nice daily candle, which looks good for this breakout.
Comment:
It faltered a little, and BTC clearly broke 20k, but I saw no significant weakness in XRP. I sold off and then re entered with higher leverage after the slight pullback. Eyeing 56 cents, and we will see how it reacts to that wick at the start of the pennant and will decide what to do at that point. Btc bounced at 19250, so if it reverses, that will be good for this idea. Obviously. Btc bouncing is never bad for a bull :)
