Ripple XRP has provided three opportunities to engage bullish speculators, the hammer candlestick support on April 23, the inverse head-and-shoulders pattern breakout on April 30, and yesterday’s emergence from an XRP bullish cup-with-handle base. In all, Ripple price has assembled a substantial foundation to build a long-duration advance.
Yesterday, Ripple price broke out from a bullish cup-with-handle base, allowing new price speculators to capitalize on a timely entry price. Unfortunately, the breakout mildly pulled back XRP into the base, forcing speculators to practice patience as Ripple price clarifies intentions.
The reversal back into the base triggered a longstanding trading rule: the pullback-plus-four. It specifically states that speculators need to give the digital asset four days to trade above the breakout pattern high. A failure to do so augments the probability that Ripple price will decline or evolve into a more complex pattern.
At the moment of writing, the XRP bullish thesis remains active, with the first notable resistance arriving at the convergence of the April high at a price of $1.96, the psychologically important $2.00, and the 61.8% Fibonacci retracement level of the 2018-2020 bear market at $2.08.
The measured move target of the cup-with-handle base is $3.16, generating an XRP gain of 90% from the handle's high price of $1.66. A rally of this significance would position Ripple price to target at least the 2018 all-time high at a price of $3.30.
Speculators should turn defensive if the Ripple price fails to rally above the breakout high of $1.76 within four days, starting with today. A decline below the handle low price of $1.31 immediately places Ripple in a vulnerable technical position, signifying a complex bottoming process or even a plunge to the April low at a price of $0.874.
XRP price has withstood the legal gyrations to be one of the top-performing cryptocurrencies since the April price low, displaying noteworthy speculator demand. Similarly, the explosion higher for the XRP/BTC affirms that the returns have been strong on an absolute basis and a relative basis.
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