Background:
XRP is currently trading in a weekly demand zone dating back to mid July. There was an explosive high volume retest of the area in early December. On the most recent entering of the demand zone, price has been rejected from the top of the zone. Price is currently trading sideways/shallow uptrend on LTF in this zone with both volumes and momentum slowing.
Strategy:
Open a short on retest of 4H minor resistance with a target at the July 20 swing low marking the bottom of the demand zone, R/R ~3.0. Fully close position on target, keeping an eye for S/R flip to open another short targeting lower levels
Invalidation Scenarios:
1. Price wick above pwEQ, confluence with 26 Jan. local high. S/L set here
2. 4H close above 26 Jan highest candle close
3. Price tests lower end of demand zone before crossing trigger
XRP is currently trading in a weekly demand zone dating back to mid July. There was an explosive high volume retest of the area in early December. On the most recent entering of the demand zone, price has been rejected from the top of the zone. Price is currently trading sideways/shallow uptrend on LTF in this zone with both volumes and momentum slowing.
Strategy:
Open a short on retest of 4H minor resistance with a target at the July 20 swing low marking the bottom of the demand zone, R/R ~3.0. Fully close position on target, keeping an eye for S/R flip to open another short targeting lower levels
Invalidation Scenarios:
1. Price wick above pwEQ, confluence with 26 Jan. local high. S/L set here
2. 4H close above 26 Jan highest candle close
3. Price tests lower end of demand zone before crossing trigger