The Weekly XRP Chart - When Reversal?
Just a necessary update on XRP, as I've been posting about it for a while. I'm not devoting as much time to writing really in-depth, long-winded analyses, but I just want to post this to give an idea of where we might be headed.
I originally posted a long setup. Should XRP have broken out of its falling wedge, it would have been a good signal to go long. However, it never did, and actually broke to the downside instead. I didn't think this was likely, but it goes to show you that not only am I not always right, but things don't ever have to play out the way you want them to.
That said, on the Bittrex chart, we still have some ascending support in the 5600-5700 area. Since the weekly RSI and ultimate oscillator are approaching bottom, I think that would be a strong area to look for a bounce or potential reversal. If that area fails to hold, we don't have much support until the 4000 area and then the next ascending support is below 3000 (ouch!).
On the Binance chart, we've already broken down from the uptrend I was looking at (you can see this in my previous analysis), but the Bittrex chart offers a longer timeframe to look at, so it's probably a bit more accurate. The pink line and the red zone on this chart are VERY important. How price behaves in that area often dictates XRP's direction. As you can see, XRP was originally distributed to buyers in that area in late 2014. That tells us it will always be any important psychological area for this pairing.
Of course, we could always bounce before reaching the mid-5000's (meaning a reversal is even possible now), but price action has been very lackluster to say the least. The altcoin market is looking much weaker than I would have expected upon this Bitcoin breakout, which has me very concerned. Either this is a shakeout to the downside for the Bitcoin ratios (many alts still look very good on their USD charts), or we have a bit pain to endure before the bear market is over. This is probably a test to see if altcoins can attract demand at higher USD prices, despite declining Bitcoin ratios. If they can't attract buyers here, this may be a market-wide failure.
On the USD chart, we can see that XRP broke out of its downtrend. Possible targets are in the green X's if we happen to bounce soon. However, a descending triangle breakdown can still occur. If XRP makes it down to 24 cents (first red X) and doesn't bounce, the next support is around 18 cents, where many people have set their descending triangle breakdown targets. Something strange to me is the ever increasing number of XRPBTC longs, despite a decreasing price. It'll be interesting to see how these longs react to a larger price shift.
In any case, this isn't financial advice, or a recommendation to buy or sell. This is just something I've been watching for a while. We'll see how it evolves.
-Victor Cobra
I originally posted a long setup. Should XRP have broken out of its falling wedge, it would have been a good signal to go long. However, it never did, and actually broke to the downside instead. I didn't think this was likely, but it goes to show you that not only am I not always right, but things don't ever have to play out the way you want them to.
That said, on the Bittrex chart, we still have some ascending support in the 5600-5700 area. Since the weekly RSI and ultimate oscillator are approaching bottom, I think that would be a strong area to look for a bounce or potential reversal. If that area fails to hold, we don't have much support until the 4000 area and then the next ascending support is below 3000 (ouch!).
On the Binance chart, we've already broken down from the uptrend I was looking at (you can see this in my previous analysis), but the Bittrex chart offers a longer timeframe to look at, so it's probably a bit more accurate. The pink line and the red zone on this chart are VERY important. How price behaves in that area often dictates XRP's direction. As you can see, XRP was originally distributed to buyers in that area in late 2014. That tells us it will always be any important psychological area for this pairing.
Of course, we could always bounce before reaching the mid-5000's (meaning a reversal is even possible now), but price action has been very lackluster to say the least. The altcoin market is looking much weaker than I would have expected upon this Bitcoin breakout, which has me very concerned. Either this is a shakeout to the downside for the Bitcoin ratios (many alts still look very good on their USD charts), or we have a bit pain to endure before the bear market is over. This is probably a test to see if altcoins can attract demand at higher USD prices, despite declining Bitcoin ratios. If they can't attract buyers here, this may be a market-wide failure.
On the USD chart, we can see that XRP broke out of its downtrend. Possible targets are in the green X's if we happen to bounce soon. However, a descending triangle breakdown can still occur. If XRP makes it down to 24 cents (first red X) and doesn't bounce, the next support is around 18 cents, where many people have set their descending triangle breakdown targets. Something strange to me is the ever increasing number of XRPBTC longs, despite a decreasing price. It'll be interesting to see how these longs react to a larger price shift.
In any case, this isn't financial advice, or a recommendation to buy or sell. This is just something I've been watching for a while. We'll see how it evolves.
-Victor Cobra
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