XRPBTC Bearish Divergence| Low Volume | Rising Wedge Hello Traders!
Today’s chart update will be on XRPBTC, we have another potential rising wedge formation looking to break to the downside with a strong bearish divergence. We need volume to back up the bears when and if we break out…
Points to consider,
- Trend broke out of rising wedge pattern
- Double top formation / Local resistance
- Local support at .618 Fibonacci/ confluence with Fibonacci Extension
- Stochastics showing downside momentum
- RSI respecting downtrend
- EMA’s giving price resistance
- Volume has decreased
XRP broke out of a larger rising wedge formation decisively after putting in a double top (local resistance), it wicked down to the .618 Fibonacci Level and is now forming yet another potential rising wedge.
Bulls need to break the double top resistance to keep the overall bull trend intact – it does look quite unlikely at current given time. Local support is found at the .618 Fibonacci level which is in confluence with a Fibonacci Extension level, making this support quite strong.
The stochastics is currently showing downwards projection, bears have a lot of stored momentum to the downside if and when this current rising wedge breaks. The RSI is converging from price, putting in lower highs whilst the price attempts to put in higher lows, proving the current bearish divergence being at play.
EMA’s are giving price strong resistance as of now, pushing price to lower levels, we need to see a bull cross if bulls are willing to push price back to upper levels near the double top.
Volume however is very dry, we did have a spike in bear volume which was due to the rising wedge break. Similarly, we need to keep an eye on volume for this current small rising wedge as this will confirm a breakout, avoiding a potential fake out.
Overall, IMO, local lows are more probable to be tested, especially the .782 Fibonacci level as this is in confluence with the 1.272 Fibonacci Extension and the overall support of the market structure…
What are your thoughts?
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And remember,
In trading, everything works sometimes and nothing works always.”
