Some would say the market is over extended and is in need of a retracement, however who ever says this doesn't understand how much hype is flowing into the market to start with, as well as the fact that we are mid swing into the 4th quarter of the bull market. Therefore i still remain bullish, but it would be healthy for the price to consolidate where it stands now, therefore creating more support around a short term level of resistance. This is key for the continuation of the short term growth.
In my previous post I discussed the $1.21 level being a pivotal point of resistance to break and if it was able to break above would be extremely bullish for the market. Well for those who don't know, we broke above with a daily high of $1.29, before moving down and creating support over the previous resistance level. This is all very healthy and sustainable.
The green and red circles drawn are a clear indication of the amount of touches that were made within the trend before a breakout occurred, the amount of touches however was important as the number 5 is a key amount of touches a pattern should endure before breaking out which ever direction it chooses. for now this signal could still be a fake out as it has fallen back into the shaded space, so time will tell whether the price will stay within the confines of the trend or reach the target of $1.38, and then $1.41.
The waterfall effect: this term refers to profits and coins being taken out of higher ranking assets and being placed into lower ranking assets in order to catch both the pumps of the higher ranks and lower ranked coins, in order to intensify overall profit take. From experience in the markets I have realized that after an ADA pump has cooled down and consolidated, the price of XRP has its pump, meaning traders are taking some profit from ADA (3) and investing it into XRP (6) as they understand the concept of the waterfall effect. However this technique must be taking with caution is it is not easy to execute this type of play without at least a decent amount of knowledge of market comparisons like ADA to XRP for example.
In conclusion i stick with my prediction in the short term of XRP hitting levels as high as $1.41 and conservatively $1.39 as it falls slightly below a key level of resistance know as the 38.2% fib retracement level.
Hope you gained some inciteful knowledge from this article, and if so please feel free to drop a like and comment your personal opinion on the current situation of XRP, whether it be completely contrasting to my views or not. Thank you!
#NotFinancialAdvice
In my previous post I discussed the $1.21 level being a pivotal point of resistance to break and if it was able to break above would be extremely bullish for the market. Well for those who don't know, we broke above with a daily high of $1.29, before moving down and creating support over the previous resistance level. This is all very healthy and sustainable.
The green and red circles drawn are a clear indication of the amount of touches that were made within the trend before a breakout occurred, the amount of touches however was important as the number 5 is a key amount of touches a pattern should endure before breaking out which ever direction it chooses. for now this signal could still be a fake out as it has fallen back into the shaded space, so time will tell whether the price will stay within the confines of the trend or reach the target of $1.38, and then $1.41.
The waterfall effect: this term refers to profits and coins being taken out of higher ranking assets and being placed into lower ranking assets in order to catch both the pumps of the higher ranks and lower ranked coins, in order to intensify overall profit take. From experience in the markets I have realized that after an ADA pump has cooled down and consolidated, the price of XRP has its pump, meaning traders are taking some profit from ADA (3) and investing it into XRP (6) as they understand the concept of the waterfall effect. However this technique must be taking with caution is it is not easy to execute this type of play without at least a decent amount of knowledge of market comparisons like ADA to XRP for example.
In conclusion i stick with my prediction in the short term of XRP hitting levels as high as $1.41 and conservatively $1.39 as it falls slightly below a key level of resistance know as the 38.2% fib retracement level.
Hope you gained some inciteful knowledge from this article, and if so please feel free to drop a like and comment your personal opinion on the current situation of XRP, whether it be completely contrasting to my views or not. Thank you!
#NotFinancialAdvice