XRP/USD has huge test up ahead

18 ott 2019

Huge Test Lies Ahead

XRP/USD pair is really starting to look nice. It's quite bullish that the price has captured the 10 W MA and the close above it is confirmation. This has led to a pump in most cases. How big the pump? Who knows, but 47 cents definitely seems in reach here and we could see it quickly. However, it's important we are able to move and stay above the 30 cent range.

Monthly

XRP/USD pair faces a huge monthly resistance barrier (black lines) at 29 cents. The 10 M MA sits at 31.8 cents, it's slightly irrelevant, but resistance is resistance.

Weekly

The weekly seems to be quite bullish. The close above the 10 W MA has usually led to a nice pump and this could really be the calm before the storm or the slight clue we needed to be bullish.

Daily

In addition, the 200 D MA is around 32.8 cents and the 100 D MA sits at around 28 cents. In the past a close on the daily above the 100 D MA has always led to a test of the 200 D MA so it seems quite inevitable that we see at minimum 32.5 cents. Clearing this would make the path to 47 cents much more plausible.

Trading Strategy

(Recommended) Passive Strategy: We can see that between the daily moving averages, we should be able to clear about 11.5% minimum on this trade if we exit around 32.5 cents from opening a long at 28.9 cents. The ability to re-enter upon a close above 33 cents should be safe to take us into the 47 cent range netting over 50%.

Aggressive Strategy: Moving stop loss up with this move to 30 cents once we move above 30 cents nets 3% if things don't work out and we see a rejection around 32-33 cents.

Worst Case: Rejection at 29 cent barrier. Buy now and set stop loss at 28.5 cents and keep an eye on 10 W MA which is currently around 26 cents. This keeps our loss at roughly 1-2% and gives opportunity for re-entry at lower price like 26 cents or on wherever the 10 W MA may be at some future time. Losing the 10 W MA should take us back to around 22 cent area.


Closing Remarks

This barrier of 29-30 cents is going to be critical to recapturing and failure to do so could result in alts like XRP capitulating further down. This would mean XRP retesting the 22 cent area.

I think there is a lot of bullish sentiment and we are getting very close to a XRP pump if we can clear this key hurdle. A tough road lies ahead, but I am slowly becoming optimistic that we can clear this barrier.

24 ott 2019

Nota

Upon the massive sell off in all cryptos, we found ourselves getting stomped out at 28.5 cents.

Although this sell off looked bearish initially, the good news is that although we wicked below the 10 W MA, we quickly recovered allowing for a reentry of 26.5 cents in XRP. The real key will be the close which will be this Sunday. A close below the 10 W MA will force us to reevaluate this position and consider if we will see one more opportunity in the 22 cent range or lower.

What is quite interesting is that XRP's weekly chart has some very interesting price action. We have seen a hammer candle (Week of August 12) right at the 26 cent S/R line. Seeing this at the S/R would indicate that this could potentially be a bottom for XRP.

As mentioned we are quite long on this coin given all the indicators and all this sell off did was provide us with a better reentry.

If we bought at 29 cents and got stopped out at 28.5 cents for roughly ~1.8% loss. Reentering at the 10 W MA around the 26.5 cent barrier would currently have you up ~4.9% putting netting you ~3% on a move that has potential to return upward 70%.

I'm extremities are tingling because alts are showing life... especially XRP which has arguably looked the strongest of all majors thus far.