XRP 4-Hour Wave E Ending Assumption for a double back-test on $0.55 support!
DISCLAIMER: I am not a financial advisor nor certified analyst, and definitely not a pro trader. All contents discussed on this blogpost are solely my own views and for trading education/entertainment purposes only. Trading and investing in cryptocurrencies are extremely risky where losses can exceed deposits. Enter with discretion. Do your own research and due diligence. The basis of this technical analysis is pure speculation.
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Good day to all. I have chosen the cryptocurrency, XRP, as the basis of my latest technical analysis where it outperformed against rival coins with the likes of Bitcoin, Ethereum, BNB, Cardano (ADA) and Solana (SOL) just this month of February.
I will set aside the news revolving around the cross-border token and focus my attention to the 4-hour timeframe, my own counting of the Elliot correction waves that XRP belongs to, and simple location of the trendlines. Very, very technical indeed so stay with me until the end of this article.
To start, let us assess what happened over the weekend first. Bitcoin, as usual, led the crypto markets’ recent dips.
In XRP’s case, in my own understanding, we saw that the major support $0.76 was dead again during the crypto leader’s dip down the roads. At least, XRP found acceptance to the previous phase’s range resistance at $0.66-0.67 range which flipped into a support for now.
If we try to look at XRP’s 4-hour trend carefully by counting the Elliot corrective waves, the latest drop was the end of wave C, so price recovering slowly back up but I assume that $0.76 up to $0.82 will be heavy lines of resistance. A strong rejection from this price range will trigger my assumption for a wave E nasty correction where bears, sellers, and grizzlies altogether unite to send price down to the previous January 2021 demand!
XRP has no other way but to perform a double back-testing of these 2021 monthly demand, picture perfect for a double bottom pattern ready to change gear up.
Take note that this TA will be a bearish scenario only and not necessarily to happen!
Lastly, let us head over to my trade plan for XRP when this bearish bias in play. I am aiming a handsome estimated risk:reward score of 7.86 on the $0.55 double back-test, and taking profit on the $1.10 weekly resistance level. I put a strict stop loss near the weekly 200 SMA as support found at $0.48 because I also assume that a massive bloodbath shall takes place on this region. Hope not!
That is all for now, thanks a lot for reading my latest TA for XRP.
You may like to watch my latest technical analysis video here:
Stay safe and God bless!
