Oversold Bounce| .50 Fibonacci | Structural Support| Higher Low

2020年2月8日

Hello Traders!

Today’s chart update will be on XRPBTC, testing structural support with oversold conditions poising the probability of an oversold bounce.

Points to consider,
- Trend broke key resistance (S/R Flip)
- .50 Fibonacci current support
- Local resistance to break
- RSI closing in on apex
- Stochastics projected up
- Volume decreasing

XRP broke a key structural resistance that is now probable support; this will confirm the S/R flip which is a very key bullish indication. The .50 Fibonacci is in confluence with structural support, this level must hold true to confirm a higher low in the trend.

Local resistance must break to continue the trend; this will allow XRP to attempt to take out current local highs.

The RSI is interesting as it is closing in on its apex, a breakout is imminent and will dictate the next probable move in XRP, that being an oversold bounce but it must break its current resistance. The Stochastics on the other hand is currently projecting upwards momentum with no real signs of reversing.

Volume is clearly declining which signals a move is imminent, especially when key technical levels come into confluence.

Overall, in my opinion, XRP needs to maintain support above the .50 Fibonacci for a confirmed higher low. The RSI is clearly oversold, increasing the probability of an oversold bounce coming to fruition.

What are your thoughts?

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And remember,

“Fatigue and mental overload create a loss of concentration – The demands of watching the screen hour after hour make it difficult to be sharp, creating fatigue effects that are well-known to pilots, car drivers, and soldiers.” Brett Steenbarger