Hello All,
In my previous analysis about XRP:BTC I mentioned that this appears to be accumulation. Well, presented in my chart, we can clearly see the double bottom outlined in purple and the current downtrend is actually a descending channel (light blue) which is bullish. It can be seen that price action has tested the upper trendline of this channel and so far the channel has held strong, however price has not broken the critical support denoted by the neon green horizontal line (this line corresponds with an inverted hammer on the weekly). Given the time frame that a person is trading there are strong opportunities to make significant gains on low risk.
In addition, I would like to mention that there is a strong trendline happening on the RSI in this timeframe which is a great sign of accumulation in this region. I suspect an upwards movement to test the price points of 2800 and possibly 3000. Since this is close to the support on the 4hr RSI it is possible that this is a buy opportunity, but a tight stop would need to be in place.
If the price breaks out of the descending channel, the price objective is approximately 3050
Best of Luck and Stay Technical!
Previous analysis:
In my previous analysis about XRP:BTC I mentioned that this appears to be accumulation. Well, presented in my chart, we can clearly see the double bottom outlined in purple and the current downtrend is actually a descending channel (light blue) which is bullish. It can be seen that price action has tested the upper trendline of this channel and so far the channel has held strong, however price has not broken the critical support denoted by the neon green horizontal line (this line corresponds with an inverted hammer on the weekly). Given the time frame that a person is trading there are strong opportunities to make significant gains on low risk.
In addition, I would like to mention that there is a strong trendline happening on the RSI in this timeframe which is a great sign of accumulation in this region. I suspect an upwards movement to test the price points of 2800 and possibly 3000. Since this is close to the support on the 4hr RSI it is possible that this is a buy opportunity, but a tight stop would need to be in place.
If the price breaks out of the descending channel, the price objective is approximately 3050
Best of Luck and Stay Technical!
Previous analysis:
