Hi friends! Welcome to this update analysis on Ripple! Let's get right to it! Looking at the four hour chart, you can see that XRP is forming a bear flag consolidation, as the 20 EMA (in blue) begins to cross into the bear flag. The 20 EMA has been very resistive lately, so the chances of a bear flag breakdown are increasing as the 20 EMA crosses into it. There is a bullish crossover that is occurring on the MACD, and there is a small amount of green volume on the chart, but the overall appearance of this chart is still bearish. If you look closely at the candles inside of the bear flag, you can see that the past three candles have tall wicks on the top sides. This is an indication of distribution (selling) and, although it is on a small scale, it shows that there is sustained sell-side pressure inside of the bear flag. That is a nuance that indicates an increase in the breakdown potential of the flag. Regardless, we have identified that there is a bear flag consolidation on the chart. Now, we just wait for the breakdown. If the flag breaks to the downside, which is the most likely outcome, a test of the 2/6 bottom, of 0.57290, will be on the table. Until then, we can use the 20 EMA as a gauge of the breakdown potential. Since it has been so resistive, we don't really want to see any sustained trading above the 20 EMA. For the bear flag to fulfill itself, we want to see the 20 EMA remain resistive, and potentially generate a breakdown of the bear flag. If/when XRP tests the 2/6 low, we will have to watch very closely to see if there is a strong bounce, or a breakdown below that level. What I find most interesting about the XRP chart, is that it is much closer to the 2/6 low, than BTC, LTC, and the others. So, perhaps XRP will be a leading indication on the performance of the rest of the market. If XRP plummets below the 2/6 low, we may see similar breakdowns in the other top coins. For now, let's keep a close eye on the action inside of the bear flag. A breakdown should occur in the near future. Good luck trading, comrades!
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-