LEFT Chart 1hr: We can see that XRP has been consolidating within a triangle that I interpret as a bullish pennant. Upwards price action is supported by multiple EMA´s and ichmoku cloud support.
RIGHT Chart 4hr: The support of the ichmoku cloud becomes even more apparent here. While this looks like a bullish pennant and a break to the upside is more likely. I have also plotted a different scenario, a drop towards 50 cents, which in my eyes wouldn't represent a trend turn but a development of a larger bull flag. This is viable because the top trendline is already apparent with the pennant formation were seeing at the moment.
Verdict: Risky to trade off this since it could develop into a bull flag, that would see us visit lower prices before an upwards surge.
RIGHT Chart 4hr: The support of the ichmoku cloud becomes even more apparent here. While this looks like a bullish pennant and a break to the upside is more likely. I have also plotted a different scenario, a drop towards 50 cents, which in my eyes wouldn't represent a trend turn but a development of a larger bull flag. This is viable because the top trendline is already apparent with the pennant formation were seeing at the moment.
Verdict: Risky to trade off this since it could develop into a bull flag, that would see us visit lower prices before an upwards surge.
Comment:
Upwards breakout with very little volume, perhaps it's a false breakout. Will see how it develops.
