XRP BUY SETUP

Trade Analysis of the Chart

1️⃣ Market Context
The chart displays a long trade setup with risk management in place.
The price is currently consolidating near the entry zone after a recent bullish move.
A gray supply zone at the top suggests potential resistance.
The risk/reward ratio looks favorable (green zone = profit target, red zone = stop-loss).

2️⃣ Trade Setup Breakdown
🔹 Entry Zone:

The price is currently at a demand/support level around $2.38 - $2.40.
The market might be testing this support before a potential upside move.
🔹 Stop Loss (SL):

Placed below the support zone, around $2.29.
This protects against invalidation of the bullish setup.
🔹 Take Profit (TP):

Set at $2.70 zone, which aligns with the previous resistance.
🔹 Confluence Factors:
✅ Bullish Structure: Higher highs & higher lows suggest an uptrend continuation.
✅ Support Zone: The price is reacting to a demand level, increasing the likelihood of a bounce.
✅ Fibonacci/Breakout Retest: The price may have retested a key breakout level.

3️⃣ Possible Scenarios
📈 Bullish Case:

If price holds $2.38 - $2.40 and forms bullish candles, it could rally toward $2.70 (profit target).
📉 Bearish Case (Invalidation):

If price breaks below $2.29, this trade setup may fail, leading to further downside.
📌 Conclusion
Current Bias: Bullish (long setup in play)

A strong break above $2.45 - $2.50 could confirm upside momentum.
Monitor lower timeframe reactions for confirmation before price moves.