Now that we got a nice little breakout on Ripple, we should look at some targets.
How high could this thing potentially be going during a bear market / upcoming accumulation phase?
Volume
First of all, I take a look at the volume. It was really significant on this breakout. Almost as much as during the last real altcoin season. This makes me believe that we're not immediately going back down again.
RSI
The RSI (up to a 10 hour timeframe) is pretty high right now and probably needs to cool of a little.
Looking at the RSI on the 1D, we're hitting some major resistance around the 55 RSI.
This makes me think that we might get a few days of consolidation before going up further.
Depending on what BTC is doing, it might be quicker.
Moving Averages
The 50 MA on the Daily acted as resistance. If we can push through that one, we're up for more.
Patterns
We're still inside a potential bear pennant. As long as we don't break out, it's still bearish.
Potential Targets
If Resistance One can break, I think a double on Ripple ($0.60) might be possible.
It would fit nicely between the 0.382 and 0.5 Fib level.
It's probably a good idea to scale out in increments if you're in a position right now.
Trade Opportunities
I personally wouldn't take a Long trade until XRP pushed out of the bear pennant formation / above the 50 MA.
Once this is broken, it could be a good Long, if the crypto market metatrend is still bullish.
Shorting could be good as a quick daytrade. On the larger timeframe, it is even more risky because XRP just broke out of a multi-month downtrend.
My opinion: Rather long than short.
Have a nice day!
How high could this thing potentially be going during a bear market / upcoming accumulation phase?
Volume
First of all, I take a look at the volume. It was really significant on this breakout. Almost as much as during the last real altcoin season. This makes me believe that we're not immediately going back down again.
RSI
The RSI (up to a 10 hour timeframe) is pretty high right now and probably needs to cool of a little.
Looking at the RSI on the 1D, we're hitting some major resistance around the 55 RSI.
This makes me think that we might get a few days of consolidation before going up further.
Depending on what BTC is doing, it might be quicker.
Moving Averages
The 50 MA on the Daily acted as resistance. If we can push through that one, we're up for more.
Patterns
We're still inside a potential bear pennant. As long as we don't break out, it's still bearish.
Potential Targets
If Resistance One can break, I think a double on Ripple ($0.60) might be possible.
It would fit nicely between the 0.382 and 0.5 Fib level.
It's probably a good idea to scale out in increments if you're in a position right now.
Trade Opportunities
I personally wouldn't take a Long trade until XRP pushed out of the bear pennant formation / above the 50 MA.
Once this is broken, it could be a good Long, if the crypto market metatrend is still bullish.
Shorting could be good as a quick daytrade. On the larger timeframe, it is even more risky because XRP just broke out of a multi-month downtrend.
My opinion: Rather long than short.
Have a nice day!
