Hi friends! Congratulations, to my Twitter followers who voted Ripple! Let's jump right in. Looking at the four hour chart, we can see that XRP is trapped between the rising blue trendline, and the 50 EMA (in orange.) If you look closely at the 50 EMA, you can see that support was found on it, near the beginning of the right shoulder. This is an important thing to note, because the 50 EMA hasn't been supportive since we were near the all-time high. Also, we haven't broken above it since then either. So, based on the performance around the 50 EMA alone, we can see that the market is behaving differently. We have a very large bullish divergence on the MACD, that has been developing since mid January. We have a sloppy, but possible, inverse head and shoulders pattern developing, like several other assets in the space. We've had a break above the 50 EMA, and it has proven to be supportive, which hasn't happened during this entire bear market downturn. Also, if you look at the highs made on the neckline of the inverse head and shoulders pattern, you can see that we've made a higher high, for the first time since the all-time high. Clearly, the tides are turning from completely bearish to more neutral, as the bulls strive to put a bottom in this market. Ultimately, we need to watch what happens now, as price continues to drift between the 50 EMA and the rising blue trendline. If you look at the MACD, you can see that it has printed a weak bearish crossover, as it begins to curve slightly to the downside. A break below the 50 EMA could send prices tumbling to the 78.6& retrace. A break above the blue trendline, is likely to send prices up to the 200 EMA (in purple.) If the 50 EMA continues to be supportive, traders are going to notice. Either way, there is an apparent shift taking place, that feels like bottoming action. We may head lower, but the technicals imply that it won't be for long.
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-
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-