Today I will be diving into the short-term fluctuations XRP is currently enduring. On the 2 hourly charts, it is clear we have broken out of an ascending triangle formation. This formation may have a neutral probability however, the bearish probability in this instance was stronger due to this triangle being part of a series of smaller patterns influenced by a previously bigger ascending triangle breakout as expressed in the image below,
This screenshot is taken from the daily chart to express the bigger picture and potential target for the market to come:
Now that you see the bigger picture you can understand why the bearish break from the current pattern was almost inevitable…well at least statistically.
2-hour chart: The price had broken out of the pattern earlier this morning and what followed has strengthened my confidence in the continuation of the downtrend due to the pair sticking to a healthy decline by retracing to the previous support as a resistance. On top of this textbook example of an ascending triangle break, the price also sits right below a strong level of resistance in the short term which is expressed using the Fibonacci retracement indicator (38.2% fib, RED).
Major support: The next important area of support to watch out for is seen in the range of 0.31334 and 0.30998. This level has proven to be strong as it holds strong support for a double bottom seen in the confines of the previous ascending triangle (yellow lines, look at the image above). This level isn't just drawn from the sight of eye but is a Fibonacci level (78.6%) drawn between the low of the ascending triangle to the high. Therefore it is clear that we will spend some time consolidating in this area before potentially breaking to our target of 0.2869. However only time will tell.
Thank you for your much-valued time. I shall greatly appreciate your honest take on this article.
@TradingView
This screenshot is taken from the daily chart to express the bigger picture and potential target for the market to come:
Now that you see the bigger picture you can understand why the bearish break from the current pattern was almost inevitable…well at least statistically.
2-hour chart: The price had broken out of the pattern earlier this morning and what followed has strengthened my confidence in the continuation of the downtrend due to the pair sticking to a healthy decline by retracing to the previous support as a resistance. On top of this textbook example of an ascending triangle break, the price also sits right below a strong level of resistance in the short term which is expressed using the Fibonacci retracement indicator (38.2% fib, RED).
Major support: The next important area of support to watch out for is seen in the range of 0.31334 and 0.30998. This level has proven to be strong as it holds strong support for a double bottom seen in the confines of the previous ascending triangle (yellow lines, look at the image above). This level isn't just drawn from the sight of eye but is a Fibonacci level (78.6%) drawn between the low of the ascending triangle to the high. Therefore it is clear that we will spend some time consolidating in this area before potentially breaking to our target of 0.2869. However only time will tell.
Thank you for your much-valued time. I shall greatly appreciate your honest take on this article.
@TradingView