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.
Once again a happy Tuesday to all my kind readers!
This is the last but definitely not the least part of my 3-part crypto trade plans including Bitcoin, Ethereum and Ripple XRP.
I will now focus my attention for XRP which personally my favorite cryptocurrency of all time after I decided to enter crypto land more than 2 years ago.
When talking about the current situation or case for XRP compared to other digital assets out there, this coin is really in handicap mode at least 50% while other alts there including crypto leader Bitcoin 100%.
It is like a chess game wherein one player have fewer pieces which is so unfair!
So many controversies this crypto is in to but the biggest of them all is the still on-going lawsuit between the Ripple company against the US SEC. This case will soon turn one year this coming December 2020 and no one really knows when this comes to a close for good.
My title phrase is “Patience from Zhou” which I got from the epic DOTA 2 professional tournaments and no need to disclose details of the basis of this phrase. We are trading not playing online games. Agree? :-)
It is all about patience for Ripple XRP!
Let us head now to the technicals, XRP is closely following Bitcoin’s price action against the USD.
There is a big steep or high yet thin line/layer of the Ichimoku cloud with an estimated range of $0.47 to $1.11. Personally I can see this as the price volatility bounds. They can be the supports and resistances of course. The current weekly candle of XRPUSD and the incoming ones will just easily pass the said thin line/layer and the price is below the weekly Ichimoku cloud from that point going forward.
On the faster time frames like the 4-hour chart, we can see the 2nd bearish flag and pole formation after the recent September 6, 2021 local high at $1.41+. When comparing this quicker timeframe against the weekly, I can see the trend in bear’s grip hence selling will continue to support my call of a wider Wyckoff distribution.
If no positive news especially the on-going lawsuit, I think XRP is still subject around Bitcoin’s price action and will also share the move both downwards and upwards all depending on what the crypto leader will do.
Again patience, there is no harm in waiting for the right demand to come. Let us wait for the capitulation to happen before we go back to the mean reversion. So for this, I will place a bid order as long entry near the XRPUSD’s weekly 50 SMA but adjust a little lower to $0.69 where the weekly supertrend buy shouts.
Perhaps stop loss will be at the twin demand zones that occurred on June 22, 2021 and July 20, 2021. Nearly a month apart as convincing bullish reversal that hit that previous September 6 local top. It will be $0.51 as our prevention of further losses.
It will be a decent idea to sell/take profit at $1.40.
The risk:reward score for this trade plan is 3.94, no more no less.
Again, patience from Zhou! Like fishing waiting for the right moment and no distractions ahead.
Happy Tuesday all.
Good luck to me.
I hope you have learned something from my 3 crypto TAs dedicated for today.
Enjoy the rest of the day!
God speed!
