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XRPUSD LONG – 38.20% Fib Re-test

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Avatar for rafaelken1989
Written by   47
7 months ago
Topics: Bitcoin, BTC, Markets, Crypto, Trading, ...

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 personal views and for Trading education/entertainment purposes only. Crypto/Cryptocurrency Trading is extremely risky where losses can exceed deposits. Enter with discretion. Do your own research and due diligence. The basis of this trading analysis is purely technical in nature.

Happy Friday everyone.

The Ripple XRP has been one of my heavily favored cryptocurrencies and I have written quite few technical analyses already. You can check my other TAs, please head over my profile.

We all know that the cryptocurrency markets can offer the best risk:reward scenario given the fact how crazy the volatility is. Now that Bitcoin’s has made another all-time-high record, one of the key factors is it is finally listed to ETFs trading, I can assume that the crypto leader can greedily head towards $70K-$75K price levels first before a correction. Price correction is normal and is part of a healthy crypto bull market cycle.

The question now is how the alts going to react when it happens? When comparing to Bitcoin, XRP’s price action has lesser volume trading thus stagnating price action after achieving a fresh 4-month high on September 2021 since May 2021 brutal sell off.

I understand that I still have a pending XRPUSD analysis discussed on my previous article but I want to give a fresh technical outlook for today.

I am seeing that the cross border settlement token will have to re-test first the 38.20% Fibonacci retracement as immediate support before next flight towards at least the May 19, 2021 high.

There is a trendline support forming from July 21 and September 22 local lows where the said 38.20% Fib can potentially residing as the 3rd local lows. These 3 local bottoms can technically create an ascending supportive channel of higher lows and we surely do not miss it as a long position opportunity.

As long as the XRPUSD’s daily RSI indicator remains above 50 to pave way for a bullish momentum anytime then my latest long plan will play out.

The Fibonacci retracements I am using is based from XRP’s fresh multi-year high last April 2021 as our top range and the bottom range will be the June 2021 monthly low.

Sellers will try to slice the price down towards $1.06 which will be our entry since the token’s price were rejected multiple times since September high forming a descending lower high channel. It seems too strong now and the XRP has no choice but to find an immediate support.

We will place a strict stop loss on the 100 day SMA which can give way for the 23.60% Fib price. We set it at $0.93.

The take profit exit will be my virtual 3rd higher high in connection to the ascending higher highs from June to September. That is $1.60.

Overall the risk:reward score for this plan will be 4.154. A good deal indeed.

Wishing best of luck!

Thanks a lot for reading my latest technical analysis for the XRPUSD.

Enjoy the rest of Friday and have a wonderful weekend ahead!

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Avatar for rafaelken1989
Written by   47
7 months ago
Topics: Bitcoin, BTC, Markets, Crypto, Trading, ...
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