Ripples Technical Fakeout And Breakout Of The Channel!

Hello Traders Investors And Community, welcome to this update-analysis about the current price movement we can watch with XRPUSD, as I told you in recent analysis about XRPUSD when XRPUSD do not manages to break down immediately of the downtrend-channel to the downside we have a high possibility for a consolidation-phase and a breakout in the downtrend-channel, exactly this scenario happened right now, it shows how technical forecast is working as an useful empirical since in the markets when used right. I highly recommend that you look into the recent analysis about XRPUSD to have a full-depth-overview to the current situation and price-movement occuring.

As you can see the strong descending downtrend-channel in my chart, we saw a Fakeout which the market provided to make an immediate test of the lower line belonging to the descending downtrend-channel and to test the strength of the bulls in that level, now we can see that this was a excelent fakeout pushing the price immediately higher to the upper boundary of the descending downtrend-channel. As expect this whole process added to the consolidation-phase I mentioned which will provide in the descending downtrend-channel.

We can see an interesting technical phenomenon in the chart right now, that is the big and important difference between a fakout and a breakout. When a fakout occurs as you can see it in my chart, the momentum is low and the candle closes in the channel therefore we get only a wick outside the channel suggesting that the bulls where stronger in that level, the same can be applied to a bearish fakeout. When a breakout occurs we get high momentum and the wick and close is remarkably outside the channel therefore it is confirming the successful breakout with highly possible continuation potentital.

Now as we can differenciate these two important price-action-phenomenons in the current XRPUSD-chart we can determine the further movement, as we broke out of the downtrend-channel there is a high possibility for XRPUSD to move higher. A technical target which you also see in my chart 0.205 and 0.208, you can see it marked in blue in the chart-picture. When we rech that target I expect a pull-back in that range because we have a bearish confluence-zone in that level.

This should give you a good overview about the current situation XRPUSD is facing, it shows one time more that technical analysis can be applied successful to the markets when used right but therfore we have to keep a cool head and detach ourselfes from mere specualtion because that is what many people and traders propaganding these days, mere speculation with no technical or fundamental foundation, behaving in this way we can also toss a coin. The only path to be longful succesful in the markets is to understand the foundations and applications within the market and therefore make wise decissions according to the given circumstances.

Thank you, Feel free to support, good weekend everybody ;)
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Information provided is only educational and should not be used to take action in the markets

Comment:

ANALYSIS UPDATE: XRP formed the crucial breakout into the upper dynamics of the range to even mark new highs above the remaining resistance above which it accelerated further bullish dynamics.