In the XRP daily chart I can see 2 strong downtrend lines. The first from 10th Feb and the second from 30th of May.
We saw a major support of 0.425c broken which sent XRP into free fall on the 6th of August which bounced at 0.24654c on the 14th of August. By drawing Fibonacci from the swing high of 0.52467c of the 18th of July to this swing low we get the levels I look out for.
Since the 14th XRP has been scaling a rising trend line, creating a pennant which so far today looks like breaking to the upside, but faces instant resistance of the 38.20% level. The moving averages look set to cross over which is a bullish development.
Bullish Scenario:
XRP breaks both the pennant and the 38.20% Fibonacci level, and the MAs cross over. The RSI is just over 50 which tips slightly in the bulls favour. This would lead XRP to 0.385c area as target 1 and 0.415c area as target 2 (I like to go just below the levels to get my orders matched :P)
I do think the upwards momentum would stall there as the past strong support of 0.425c would now act as stiff resistance. Any attempt at the 78.60% Fibonacci level would face even more resistance from the 50 day moving average.
Bearish Scenario:
XRP fake breaks the pennant and snaps straight down from the 38.20% Fibonacci taking the MAs with it (assuming it closes above the pennant today) or even better, closes inside the pennant creating yet another rejection of the 38.20% Fibonacci level. We'd instantly be looking at the 23.60% level of 0.312c which has support XRP this month and beyond that the 0.24654c level as a potential buy zone. Beyond the swing low, we would be looking at the 27% Fibonacci extension of 0.17c. I don't think we'd get to the golden ratio level of 0.07c XRP as it just seems too unrealistic! But this is Crypto so who knows what could happen.
Hope you enjoy reading my analysis, any feedback would be muchly appreciated and if I've missed anything do holla!
We saw a major support of 0.425c broken which sent XRP into free fall on the 6th of August which bounced at 0.24654c on the 14th of August. By drawing Fibonacci from the swing high of 0.52467c of the 18th of July to this swing low we get the levels I look out for.
Since the 14th XRP has been scaling a rising trend line, creating a pennant which so far today looks like breaking to the upside, but faces instant resistance of the 38.20% level. The moving averages look set to cross over which is a bullish development.
Bullish Scenario:
XRP breaks both the pennant and the 38.20% Fibonacci level, and the MAs cross over. The RSI is just over 50 which tips slightly in the bulls favour. This would lead XRP to 0.385c area as target 1 and 0.415c area as target 2 (I like to go just below the levels to get my orders matched :P)
I do think the upwards momentum would stall there as the past strong support of 0.425c would now act as stiff resistance. Any attempt at the 78.60% Fibonacci level would face even more resistance from the 50 day moving average.
Bearish Scenario:
XRP fake breaks the pennant and snaps straight down from the 38.20% Fibonacci taking the MAs with it (assuming it closes above the pennant today) or even better, closes inside the pennant creating yet another rejection of the 38.20% Fibonacci level. We'd instantly be looking at the 23.60% level of 0.312c which has support XRP this month and beyond that the 0.24654c level as a potential buy zone. Beyond the swing low, we would be looking at the 27% Fibonacci extension of 0.17c. I don't think we'd get to the golden ratio level of 0.07c XRP as it just seems too unrealistic! But this is Crypto so who knows what could happen.
Hope you enjoy reading my analysis, any feedback would be muchly appreciated and if I've missed anything do holla!
Comment:
Looks like the Bearish Scenario is right on point :D