XRP moving inside a triangle with market's uncertainty
This is not trading advice. I'm not a professional trader. This is just my idea.
What I have done? Started shorting at 8700. I am going to SHORT all the way up to 9400, strengthening my position. And here is why:
Fundamentals analysis: why should anyone enter on the cryptocurrency space? Freedom is the answer. Censorship resistance is the main characteristic shared by decentralized currencies, like Bitcoin and Nano. The most valuable lesson learned in all history is that "decentralization is necessary to security". When centralized systems (like Ripple, Stellar) rule the world, be careful. They are here to centralize power on a few hands and this is very dangerous. They will get your money and destroy the cryptocurrency space, if it is necessary to increase their wealth. Meanwhile decentralized currencies (like Bitcoin and Nano) are here to decentralize power and money. XRP can reverse your transaction (could you believe in Bitcoin if it were possible to just one authority to change a bitcoin transaction?). They can print 60 billion XRP executing a single line on their centralized database. Why would you put your money and your trust in a system created by banks and created for banks?
Bitcoin is king. Always remember that: if bitcoin drops, XRP will drop even further. Be prepared to short. If bitcoin booms with a giant green dildo, XRP will drop too. Be prepared to short anyway.
Technical analysis:
2- XRP had quite 200% gains in just four days. Do you know what does it mean? A LOT of people will be taking profits and shorting at the first opportunity they have. If you trust on centralized systems like Ripple, don't FOMO and don't be scared to miss the train, do not buy now... you can buy on retrace. Or you can buy on the 9400 breakout. Wait for the best scenario to act. Don't act emotionally, just rationally. The main short-term trend now is bearish whilst XRP is below 9400. Be on the right side on the right moment.
3- Volume is getting lower and lower, this shows market is not ready to be super mega crazy bullish, everyone is being cautious and taking profits (reasoning is necessary to get better at trading).
4- On the logarithmic scale, XRP showed your upwards path, going from 4300ish~5000ish. This will act as the strongest support line for its upward trend. Anytime the market can decide to throw Ripple back to this trend line, be prepared to it. It is going to happen at least one more time. The lowest red line shows it. Every parabolic move has an end, and then returns to the normal trend line.
5- Obviously XRP can go upwards to 8900~9000, touching the resistance line on the chart. Be prepared to short on this area. If 9000 gets broken with strong volume, just wait to short with high volumes between 9200~9300ish (greatest risk-reward). Just put a stop-loss above 9400 and everything is going to be fine. 9400 is the strongest resistance, be cautious. If it breaks 9400 with high volume, I would turn my mind into bullish and then would LONG.
6- You can see XRP moving inside triangles. It is easy to say you must be LONG right above the support line of the biggest triangle (with stop-loss below it) and you must be SHORT close to the resistance lines of all the triangles, or if it breakdowns support trend lines.
7- Remember, you will just change your mind if price goes above 9400. I will easily LONG with leverage, no problem. No, it will not go upwards forever, it will just face a strong resistance at 10k. And then you can take profits all the way up to 9450~9979. You're gonna win this trade anyway!
8- Don't be too greedy! If you are getting profits, just GET THE PROFITS! Don't wait forever... If I am shorting from 8700, obviously I will take some profits between 8400~8500. As I suppose this price can act shortly as support line (on the small triangles). But I will take the most profits close to the 8058 fibonnaci level.
9- Let me know what you think.
What I have done? Started shorting at 8700. I am going to SHORT all the way up to 9400, strengthening my position. And here is why:
Fundamentals analysis: why should anyone enter on the cryptocurrency space? Freedom is the answer. Censorship resistance is the main characteristic shared by decentralized currencies, like Bitcoin and Nano. The most valuable lesson learned in all history is that "decentralization is necessary to security". When centralized systems (like Ripple, Stellar) rule the world, be careful. They are here to centralize power on a few hands and this is very dangerous. They will get your money and destroy the cryptocurrency space, if it is necessary to increase their wealth. Meanwhile decentralized currencies (like Bitcoin and Nano) are here to decentralize power and money. XRP can reverse your transaction (could you believe in Bitcoin if it were possible to just one authority to change a bitcoin transaction?). They can print 60 billion XRP executing a single line on their centralized database. Why would you put your money and your trust in a system created by banks and created for banks?
Bitcoin is king. Always remember that: if bitcoin drops, XRP will drop even further. Be prepared to short. If bitcoin booms with a giant green dildo, XRP will drop too. Be prepared to short anyway.
Technical analysis:
2- XRP had quite 200% gains in just four days. Do you know what does it mean? A LOT of people will be taking profits and shorting at the first opportunity they have. If you trust on centralized systems like Ripple, don't FOMO and don't be scared to miss the train, do not buy now... you can buy on retrace. Or you can buy on the 9400 breakout. Wait for the best scenario to act. Don't act emotionally, just rationally. The main short-term trend now is bearish whilst XRP is below 9400. Be on the right side on the right moment.
3- Volume is getting lower and lower, this shows market is not ready to be super mega crazy bullish, everyone is being cautious and taking profits (reasoning is necessary to get better at trading).
4- On the logarithmic scale, XRP showed your upwards path, going from 4300ish~5000ish. This will act as the strongest support line for its upward trend. Anytime the market can decide to throw Ripple back to this trend line, be prepared to it. It is going to happen at least one more time. The lowest red line shows it. Every parabolic move has an end, and then returns to the normal trend line.
5- Obviously XRP can go upwards to 8900~9000, touching the resistance line on the chart. Be prepared to short on this area. If 9000 gets broken with strong volume, just wait to short with high volumes between 9200~9300ish (greatest risk-reward). Just put a stop-loss above 9400 and everything is going to be fine. 9400 is the strongest resistance, be cautious. If it breaks 9400 with high volume, I would turn my mind into bullish and then would LONG.
6- You can see XRP moving inside triangles. It is easy to say you must be LONG right above the support line of the biggest triangle (with stop-loss below it) and you must be SHORT close to the resistance lines of all the triangles, or if it breakdowns support trend lines.
7- Remember, you will just change your mind if price goes above 9400. I will easily LONG with leverage, no problem. No, it will not go upwards forever, it will just face a strong resistance at 10k. And then you can take profits all the way up to 9450~9979. You're gonna win this trade anyway!
8- Don't be too greedy! If you are getting profits, just GET THE PROFITS! Don't wait forever... If I am shorting from 8700, obviously I will take some profits between 8400~8500. As I suppose this price can act shortly as support line (on the small triangles). But I will take the most profits close to the 8058 fibonnaci level.
9- Let me know what you think.
Trade active:
Yeah. We are definitely below 8400, so I'm taking little profits here (so, my position will be higher than 8700). I will still wait for 8100ish to take most profits.
Good luck.
Good luck.
Trade active:
The trade perfectly reached the first fibonacci level, and I closed almost my entire position (85%) to get the profits. I was leveraging 10x, so it was a little risky. Now I'll let just my 10% short position from 8700 to be closed on the second fibonacci level/ close to the support trend line of the biggest triangle.
Trade active:
So far so good, great profits and going into the next fibonacci level at 0.618 - 7200 ish, exactly as predicted. If you are shorting from 8000, just get some profits all along the way =)
Enjoy it!
Enjoy it!
Trade closed: target reached:
Congratulations! If you followed me, the move went exactly as predicted! You had the chance to short from 8700 until 7200.
Now we are at the second fibonacci level, where we may see a bounce for a moment on the support trend line (the lowest red line on the image), maybe getting back to the 7500 zone.
Now we are at the second fibonacci level, where we may see a bounce for a moment on the support trend line (the lowest red line on the image), maybe getting back to the 7500 zone.
The move went as expected, touching on the lowest red support line and flew up to 7500 zone!
Nice profits.
Trade closed.