XRP Returned To Its Main Event Channels
Image source: https://www.finlogix.com/analysis/20220820/xrp-returned-to-its-main-event-channels
With the cryptocurrency markets’ recent sell-offs led by Bitcoin as always, I’m eyeing the XRP price trajectory once again.
Technically, to assess with the latest dips, the cross-border token just lost its pivotal range that have opened long interest for traders.
XRPUSD in support mode. Speculating for a new lower consolidation range starting from $0.32-0.36 where this can be our projected swing high and low for the next two weeks left in August.
The hidden falling wedge pattern has mutated into an imperfect symmetrical triangle from the connections last July 26 and overnight’s low. The possibilities for new swing lows can be accepted as long as the prices stayed within the main event range scopes.
Bullish thesis towards re-testing the Fib 23.60% retracement levels can still be valid once there is a convincing bounce-off support short-term.
The said retracement level was formed from the double tops last February and March 2022.
In case the imperfect symmetrical triangle formation breaks down, bears will attack the stop loss liquidity near the main support channel. I speculate this is where the best condition for a long position for traders who have waited since XRP’s price peak last August 2.
For this to happen, oversold metrics must be hit. From then on, a price reversal to the upside will be probable.
Mid-term view, the June demand this year is still a viable threat by the bears. On the long-term side, once a fresh swing low for 2022 below June comes in, may trigger a negative Fib extension levels targeting 161.80% where $0.21-0.23 range resides. The 161.80% Fib extension level is derived by connecting the June lows and July highs.
This latest trade plan for XRPUSD will have a strict stop loss placed just a little bit above from the June lows. This is where my previous XRP analysis comes in.
You may read the separate long plan with the aim of back-testing June monthly support through the link below.
The long entry kicks in near the main support channel suspecting a new round of price sideways.
An overall risk:reward score of 4.
Good to see this, hope XRP regains it's cool position anytime soon as I keep watch of my holdings on the trusted application from https://atomicwallet.io/, where users have exclusive access to the private keys.