| XRPUSD | POTENTIAL BULLISH RETRACEMENT BEFORE BEARS CONTINUE!
After the breakout we had the other day the price has finally consolidated on a key level of support (fib 61.8%-65%) with the 50% fib sitting perfectly on top of the current short term high of $0.348. This consolidation depicts health in the market as the market is not in an oversold state and therefore increases the probability of further decline in the medium term.
However the 1 hour chart is showing a short term bullish sign (diamond formation). The price will have to break and hold above the $0.348 level (fib 50%) in order to be sure of the target of roughly $0.36. The $0.36 area is a very strong area of resistance therefore I do not think it will break to the bulls just yet. This may be a bullish indicator and you are probably wondering why my article is set as short. Unfortunately this bullish move is what is required in order to justify a healthy move to my target of $0.287, therefore in the medium term I am bearish.
Personally I do not think the price will easily break the 50% fib and the price could dump sooner than expected due to the current market as a whole not being in the best state, However in order to add further confluence to the previous bearish breakout, a retracement to the previous support (yellow line) would strengthen my prediction. It could be suggested that a short trade can be placed slightly below the $0.32972 mark to await a target point of $0.31334 and for the longer term traders the final level of $0.28693. (this is not financial advice, I am just stating my opinion, These articles are created in order to strengthen your already existing opinion on the particular market.)
The RSI has some room to move before it hits an oversold state and if it breaks the 62.8 level of support as seen on the 14th and 17th of August the price is set to have a spike, potentially even reaching the predicted bullish target before falling further in the following weeks to come.
I hope this article was able to help with any of your short term curiosities and add further confluence to your trading strategy.
Thank you.
However the 1 hour chart is showing a short term bullish sign (diamond formation). The price will have to break and hold above the $0.348 level (fib 50%) in order to be sure of the target of roughly $0.36. The $0.36 area is a very strong area of resistance therefore I do not think it will break to the bulls just yet. This may be a bullish indicator and you are probably wondering why my article is set as short. Unfortunately this bullish move is what is required in order to justify a healthy move to my target of $0.287, therefore in the medium term I am bearish.
Personally I do not think the price will easily break the 50% fib and the price could dump sooner than expected due to the current market as a whole not being in the best state, However in order to add further confluence to the previous bearish breakout, a retracement to the previous support (yellow line) would strengthen my prediction. It could be suggested that a short trade can be placed slightly below the $0.32972 mark to await a target point of $0.31334 and for the longer term traders the final level of $0.28693. (this is not financial advice, I am just stating my opinion, These articles are created in order to strengthen your already existing opinion on the particular market.)
The RSI has some room to move before it hits an oversold state and if it breaks the 62.8 level of support as seen on the 14th and 17th of August the price is set to have a spike, potentially even reaching the predicted bullish target before falling further in the following weeks to come.
I hope this article was able to help with any of your short term curiosities and add further confluence to your trading strategy.
Thank you.