Hey, Traders. Taking a look at XRP. We've been following this one for quite a while now since its fall from the $3.20 area, where we saw the huge drop coming. The higher time frames H4 and Weekly are usually our focus and is where the overall direction is coming from. Today, I'm diving in and looking at more short-term price action and seeing where our next potential moves are.
Where are we now:?
Since the ATHs of ~$3.40, XRP has fallen over 67% down to fill some Major Fair Value Gaps and Daily Structure Sources. BUT, the main problem with this asset has been and still is that the Weekly structure has NO SUPPORT until down well under $1.00 and the strongest is down near $0.50. As we've pointed out many times, these areas seem inconceivable to most crypto enthusiasts and analysts, but it is very conceivable. So, today we are sitting around $1.38 - $1.40
The H1 Structure:
Looking at the H1, we got a Break of Structure UP in early Feb that caused this push up to the H4 Supply Area (~$1.60 range). This break was just a test to see if we could get any higher time frame structure to confirm any end to this fall. The H4 did confirm that with its own Break of Structure UP. So, as we've taught here, the main focus now needs to be to look for a return to those BOS Sources to see if the market is Really ready to end this down trend. The target for the H1 is ~ $1.21. XRP HAS to come back down to this area to satisfy buyers who know that it is still overvalued at this point. So, we need to look for a return here. Aggressive traders already took shorts at the H4 Supply after seeing the BOS.
What to look for next:?
At this H1 Demand Source ~$1.21 area - we need to see a strong bullish response that pushes back above these Supply areas (H1 and H4). This H1 Demand Source is a MUST HOLD if we are going to end this huge bearish move. A failure of this area ( H4 closes below $1.14), are just further confirmations that the Weekly is still not satisfied, and we need to eye the dreaded drop to below $1.00. If that happens, then the fall to the $0.50 area is all but certain, with only minor opportunities to stop it. $0.72 - $0.75 area COULD prove to be a floor mostly because of the Major shift in the XRP use case in the last 2 years since we've visited that price range.
So, if you are Trading XRP, these should be some good setups to look for. If you are a long-term "Lifer" of XRP, then you're going to have to either bite the bullet and hold through or exit and resize once we finally get to a stable floor.
As always, I hope this helps. Please leave me your comments, questions, etc. and let me know if we can help you in your trading journey!
Where are we now:?
Since the ATHs of ~$3.40, XRP has fallen over 67% down to fill some Major Fair Value Gaps and Daily Structure Sources. BUT, the main problem with this asset has been and still is that the Weekly structure has NO SUPPORT until down well under $1.00 and the strongest is down near $0.50. As we've pointed out many times, these areas seem inconceivable to most crypto enthusiasts and analysts, but it is very conceivable. So, today we are sitting around $1.38 - $1.40
The H1 Structure:
Looking at the H1, we got a Break of Structure UP in early Feb that caused this push up to the H4 Supply Area (~$1.60 range). This break was just a test to see if we could get any higher time frame structure to confirm any end to this fall. The H4 did confirm that with its own Break of Structure UP. So, as we've taught here, the main focus now needs to be to look for a return to those BOS Sources to see if the market is Really ready to end this down trend. The target for the H1 is ~ $1.21. XRP HAS to come back down to this area to satisfy buyers who know that it is still overvalued at this point. So, we need to look for a return here. Aggressive traders already took shorts at the H4 Supply after seeing the BOS.
What to look for next:?
At this H1 Demand Source ~$1.21 area - we need to see a strong bullish response that pushes back above these Supply areas (H1 and H4). This H1 Demand Source is a MUST HOLD if we are going to end this huge bearish move. A failure of this area ( H4 closes below $1.14), are just further confirmations that the Weekly is still not satisfied, and we need to eye the dreaded drop to below $1.00. If that happens, then the fall to the $0.50 area is all but certain, with only minor opportunities to stop it. $0.72 - $0.75 area COULD prove to be a floor mostly because of the Major shift in the XRP use case in the last 2 years since we've visited that price range.
So, if you are Trading XRP, these should be some good setups to look for. If you are a long-term "Lifer" of XRP, then you're going to have to either bite the bullet and hold through or exit and resize once we finally get to a stable floor.
As always, I hope this helps. Please leave me your comments, questions, etc. and let me know if we can help you in your trading journey!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.