DISCLAIMER: I am not a financial advisor. All contents on this blog are solely my own personal views and for Cryptocurrency Trading education/entertainment purposes only. Cryptocurrency Trading is very risky. Losses can exceed deposits. Enter with discretion.
Last December 29, 2020, the XRPUSD price hit rock bottom around 17 cents level after the devastating SEC news was out allegedly accusing the Ripple company of selling unregistered securities to its customers. A lot of different trading sentiments are mixed up over the social media preferably Twitter and news headlines that XRP can even go lower than the 0.17 level if it can’t settle its issue with the US SEC. For some trading analysts, the XRP already reached its dead end; to others it will make a comeback. Many retail investors are devastated with reports of millions of investments liquidated by the said XRP price downfall.
Even many US-based exchanges like Coinbase, Binance US, and some international ones like well-known European exchange Bitstamp have decided to halt all XRP tradings with their respective dates. Adding more damage to XRP’s already mediocre price.
We all know that the said company, Ripple has been battling against the SEC for years to date which CEO Brad have been very vocal on his CNN interviews as well on his Twitter account that he mentioned the lack of regulatory clarity and a level playing field have hindered price of the XRP.
As XRP entered 2021, it managed to make series of comebacks. First, price was held very well on May 2020’s monthly chart acting as a strong support, buying all the dips.
In fact, the first monthly and weekly charts of XRP are in big, green candles telling us that the bottom was already hit and price reverse to the upside.
Just yesterday 8th of January 2021, to everybody’s surprise, XRP’s price pumped as high as 40%!
With intraday high peak at the 0.37 against the USD from 0.24+ open before correction finally close the price earlier at 0.32 level. It managed to close a daily candlestick price just above the 200-day SMA (simple moving average). Making it act as the new support for this recent XRP’s price action.
Of course, retracements are normal after a recent local high is reached and it is a healthy indicator. Most intermediate and experienced traders will trade from this.
I will create a long entry by buying in between the daily Ichimoku lower level and a little below the 200-day SMA price, that will give me the buy figure at approximately 0.29280.
Next, I set my exit at the recent local high at 0.37 which I assume will be re-tested by XRP’s latest bullish momentum. I will set my stop loss at the 0.27 mark where I can see lots of buy orders or supports in placed already, waiting for the big dips to happen just in case things go wrong again for the XRP.
This trading plan will reward me a rough 3.39 risk/reward ratio.
After all, the cryptocurrency market is one of the greediest trading space in the world with the crypto recently hit a 1 trillion dollar market cap.
