50% Target Ascending Triangle on XRP unfolding mid January
XRP/BTC is showing a high ascending triangle that raised the price a 130% from 4350 to 10150 satoshis. The chart also show a cup and handle within the triangle. Estimating a target for both patterns differs among analysts but I chose to take the absolute height of the triangle which is around 5050 satoshis. Adding that to the price of the top of the triangle gives the target of 15200 satoshis.
Moreover, on the weekly chart, shown below, a reverse head and shoulders is shown. But I won't call a target on it because of the volatility of XRP.
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My stop loss would be at the second highest low of the triangle at 8888 satoshis.
Moreover, on the weekly chart, shown below, a reverse head and shoulders is shown. But I won't call a target on it because of the volatility of XRP.
My stop loss would be at the second highest low of the triangle at 8888 satoshis.
Comment:
One more bullish sign. Consensio is showing a bullish sign. Consensio is an indicator made of the three simple moving averages which I chose on a daily scale to be 15, 50, and 200-day MAs. We see the short-term MA above the medium-term and those two above the long-term MA and all three moving upwards. I don't believe in XRP nor do I see any worth in it as a token, but the charts are telling me to go bullish.
Comment:
The candle of 1 January shows that the rising trend line of our triangle has supported and reversed the price. That is a good enough sign for us to move the stop loss upwards to 9050 Satoshis or even more to the bottom of the two candles of 31 December and 1 January and that is at 9350 Satoshis. However, I'm not confident about the latter because it's such a tight stop loss given that the candles themselves are tiny and a volatile spike downwards might still occur and get you out of the trade too soon.
Notice also that this is the 7th time the trend line is acting as support.
Be mindful of risks and be patient and good luck trading.
Notice also that this is the 7th time the trend line is acting as support.
Be mindful of risks and be patient and good luck trading.
Comment:
As you can see the triangle could not hold because the 4 January candle fell through the rising trend line. However, the 50-day moving average supported beautifully, and gave a nice pin bar. This is the only of two remaining bullish signs whereas the rest got diminished:
1- Ascending triangle: No longer valid.
2- Cup and handle: No longer valid.
3- Inverse Head and Shoulders: Doesn't look convincing any more.
4- Consensio: still giving a bullish bias.
Now I'm not as bullish as when I started this trade. However, my stop loss at 9050 satoshis wasn't hit, so I'm keeping the trade, ready to take the loss.
I've been trying to re-draw the triangle such that it fits, but all my attempts failed. The initial rising trend line was well-fitting (with seven touches) while any other line I draw now will have 3 touches at most. Look at the attached image to understand how sloppy my attempts were. But let's wait for the 5 January candle to close. lest it does so over the trend line.
1- Ascending triangle: No longer valid.
2- Cup and handle: No longer valid.
3- Inverse Head and Shoulders: Doesn't look convincing any more.
4- Consensio: still giving a bullish bias.
Now I'm not as bullish as when I started this trade. However, my stop loss at 9050 satoshis wasn't hit, so I'm keeping the trade, ready to take the loss.
I've been trying to re-draw the triangle such that it fits, but all my attempts failed. The initial rising trend line was well-fitting (with seven touches) while any other line I draw now will have 3 touches at most. Look at the attached image to understand how sloppy my attempts were. But let's wait for the 5 January candle to close. lest it does so over the trend line.
Order cancelled:
The triangle is not defendable anymore. Even on the weekly, the week closed below the trend line, and below the 50-day moving average. Moreover the 50-day moving average resisted the price on the first 12 hours of 7 January.
The triangle is broken. The stop loss at 9050 Satoshis was his. The trade is cancelled.
The triangle is broken. The stop loss at 9050 Satoshis was his. The trade is cancelled.
Trade closed: stop reached:
Oh I meant to use "stop reached" :)