Hi friends! Welcome to this update analysis on Ripple! Looking at the daily XRP chart, you can see that Ripple has been forming an enormous triangle (in blue) for the past six months. Inside of the triangle, we can see that the price action is in the form of a head and shoulders.
So, a head and shoulders pattern should produce a breakdown, but so should the triangle, since triangles are continuation patterns and this is a downtrend. Despite all of that, I personally think that we are more likely to see a breakout to the upside. I think there is a high probability that Bitcoin has bottomed, and because of that, I think there is a low probability that XRP will continue to fall. An upside breakout is also likely because of a significant reduction in sell-side momentum. We can see that on the MACD, which has printed a bullish divergence (in green.) So, I expect to see a breakout to the upside, but I won't trade that setup until it actually materializes. With that said, a breakout above the blue triangle would cause XRP to rally into the 200 EMA (in purple,) which is about 25% higher.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
So, a head and shoulders pattern should produce a breakdown, but so should the triangle, since triangles are continuation patterns and this is a downtrend. Despite all of that, I personally think that we are more likely to see a breakout to the upside. I think there is a high probability that Bitcoin has bottomed, and because of that, I think there is a low probability that XRP will continue to fall. An upside breakout is also likely because of a significant reduction in sell-side momentum. We can see that on the MACD, which has printed a bullish divergence (in green.) So, I expect to see a breakout to the upside, but I won't trade that setup until it actually materializes. With that said, a breakout above the blue triangle would cause XRP to rally into the 200 EMA (in purple,) which is about 25% higher.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-