Looking at the four hour chart, we can see that XRP has fallen from the pattern, and has reached my first and second targets. Additionally, XRP has dropped back into the , and is testing the bottom side of some overhead resistance (red dotted .) Technically, we are in oversold territory on the indicators, so a slight pause in selling pressure is possible. Although, as "possible" as a pause may be, I'm not so sure that it's probable. On the , sell-side momentum is still expanding, meaning that this market could drop even deeper into oversold territory. The clear downside support is at the 78.6% retrace, near 90 cents. Interestingly, you can see that a slightly rising level of support (blue ) is also converging with the 78.6% retrace. A convergence of support levels increases the legitimacy of the support. However, if a level of convergence is broken, it generally results in more rapid selling. Taking a closer look at the blue , we can see tat it has held on 5 separate occasions. However, if XRP starts to test it with increasing frequency, that would increase the likelihood of it being broken. Until then, I think it's safe to assume that the blue will be supportive. On the upside, resistance remains at the red dotted , and then the top of the . It is possible, that XRP trades into the corner formed between the blue and the top of the falling , before breaking up or down. I'll keep you posted, as the chart develops.
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***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Please explain more about your opinion
I feel the use of a line then copied over to the neck line isn’t accurate as the line stretches or shrinks due tot eh wide price ranges.
Precentage levels seem to work better on crypotos in my opinion.