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.
XRPUSD literally had a roller coaster ride in the month of February. It went as high as $0.75 then immediately corrected the hard way to the bottom of $0.34. It seemed WSB group had taken interest on the cross border token after it pumped the likes of GameStop stock to show the big players in Wall Street the power of united retailers last February 1. Other theories I have in mind is that the XRP received the money that flowed in Dogecoin after boss Elon Musk viral tweet sent immediate wild response from followers hence we saw a massive 1000% gain in just a short period of time. That’s a WOW for me!
So based on how I feel and see it, XRP became the tool of on-demand-liquidity seeing the price spikes in just short period of time. After that XRP price struggled and kept on falling back and forth. Somehow the crypto find solace after Ripple registered as a Wyoming business, a crypto-friendly region, XRP had a surprise surge afterwards just before its pre-trial conference against SEC happened. All occurred in the same day on February 22. Is it pure coincidence or orchestrated? The price already went up just before the pre-trial’s outcome. This is where the famous trading phrases, 'Buy the Rumor, Sell the News' strategy can be seen.
Going back to the technicals, after I have confirmed that the Bitcoin is finally in consolidation period which is good for the alt coins or alts including XRP, XRPUSD price rallied and kept up with the king coin.
Before I continue, take note that the prices and indicators I have used are based on the time of writing this analysis to avoid confusion.
XRP’s 4-hour chart looks very strong to me, my trading plan is for a long position. It seems forming an inverse Head and Shoulders pattern which is bullish. XRP managed to re-claim the Fibonacci retracement # 0.236 where the multi-year supports 0.42-0.43 are found. The rounding bottom is found here forming and currently building huge bids creating a strong support as time goes by. The head area is also found on this retracement number as the base.
XRP’s 4-hour MACD is poised for a bullish breakout while the Awesome Oscillator finally printed in positive territory. In order to complete the inverse H&S pattern, it must first break the wall found near the 4-hour 50 and 200 SMA death cross. This resistance is 0.47 at least. Once the bulls break this, the rally continues upward towards Fibonacci retracement # 0.382 (0.49-0.50) as the neckline and the shoulders will be complete going forward. The Ichimoku lower cloud is found above this neckline and will further enhance the uptrend towards the multi-year resistance (0.75-0.50).
Any entry above the retracement 0.236 can be picked. In my case, I set the bid at 0.45 supporting the bullish move. I set my stop loss on February’s rock bottom found at 0.34 mark. I take profit at the re-test on XRP’s multi-year resistance found at 0.75 which is only touched 3 times in 3 years so far. This trade plan will approximately give me a Risk/Return ratio of 2.727.
