As you can see, a second head shoulder pattern is visible in addition to the one in my previous analysis. At the moment we can see that a triangle has formed. This one is usually bearish in a downtrend like here. So I expect a further decline with the previous low as the first target.
We always need to have all options open. In this case the H-S pattern neckline is not retested yet. So in theory it could go up to 1.32 if the triangle is broken to the upside with good volume. That would not change the validity of the H-S pattern because a re-test of the neckline is perfectly normal.
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Traders, as you can see we are in a choice at the moment. XRP can make a move up from the triangle or we will continue the decline immediately. Place a good stop because it could all go down again very quickly.
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To go long for a short ride up I would first like to see a good volume spike and a positive divergence along with a positive candle setup.
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Be carefull! The triangle changed form. See the right one in the second chart please.
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We will see probably a test of the neckline before further decline! This is for me no long signal!
XRP has a tendency to go upwards with every little btc upmove , but definitely possible to get a long ass wick down to 0.5$ region if BTC hits 200EMA in Daily chart. Great analysis.
Ether2020
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@WACD, Thank you so much! Yes that is very right! just like ETH pretty strong along with other ALTS. Just Bitcoin dominance is very important in this. The market is very nervous but let us not forget the gigantic movements in a lot of ALTS so 50% retracement is not strange and still very bullish!