A Legendary Look At Ripple! (XRP)

Hi friends! Welcome to this update analysis on Ripple! Let's jump right in. Looking at the four hour chart, you can see that XRP continues to trade above the 50 EMA (in orange.) Support was found on the 11th, for the first time since the all-time high. In addition to XRP finding support on the 50, we can see that it has also surpassed the rising blue trendline, and is finding support on it as well. However, the 200 EMA (in purple) is falling into the price action, compressing XRP into a small trading area. There is a powerful bullish divergence on the MACD, and XRP has yet to produce a bullish rally like LTC, BTC, and others. If you recall from my last post, I showed you this potential inverse head and shoulders pattern. We can see that the right shoulder is being drawn out, a little further than I would like to see, however, we could still get a break to the upside, and have a long, weird right shoulder. I've noticed that a lot of people seem to think that patterns have to be perfectly symmetrical to be relevant, and that just isn't the case. I know that this is an inverse head and shoulders pattern, because it was formed in the exact time-frame as others in the market. It is an inverse h&s pattern, but that doesn't mean that it will produce a breakout. We still need to watch it. Here is a bullish trade example, for educational purposes only. If you were felling frisky, you could go long here, with the expectation that XRP will rise and complete the shoulder, and a subsequent breakout. You could have a super tight stop, just below the 50 EMA, and that would reduce your downside risk, with some nice upside potential on the table. "Oh but Magic, you said NEVER trade a pattern until you see a breakout!" That is generally true, but this is a setup with close downside support, and a lot of upside potential. I'm not actually suggesting that you take this trade, I'm just giving you an example of how Magic would trade this setup. On the upside, look for a break above the 200 EMA (in purple) followed by a rally to the 61.8% retrace, and the neckline of the inv. head and shoulders pattern (black trendline.) On the downside, look for the blue trendline to remain supportive. If XRP breaks below that, the 50 EMA had better be support, or look out below.

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.***

-MPC loves you-

-JD-