Crypto-AST XRP/USD Breakdown - 15/01/2020
Daily chart
- On the price chart, we can see that XRP is just below main resistance region of 0.25$. This price level was previously a support zone but as we know, once supports are broken they become ceilings. It is extremely difficult for XRP to now break upwards of this level and if this occurs this is a good indication of bullish momentum to highs of 0.31$, which once again is another key resistance zones. None the less, we can observe that EMA 200, which has historically kept price down is currently at 0.27$ and even in the case that we break above the 0.25$ price resistance, we will have quite a tough time trying to break through this resistance at 0.27$. This is all an indication that there are many near term obstacles for XRP to overcome and the chances are even if it overcomes these obstacles, there is very little chance of breaking above the 0.31$ mark. In essence, there is short term bullish price action on BTC which could take us to highs of 9.4k and 10.2k and this would translate into XRP price with a rise to highs of 0.31$. Furthermore, XRP is already in overbought territory across momentum indicators and this would suggest that there is no way that we could see breaks above 0.31$ to the upside.
- Short opportunities would arise again once we see resistance at the 0.31$ price level and this would give us to see a momentous trade with targets to 0.18$ to the downside from 0.31$!
- In the long run, we expect XRP to topple down to 0.10$ and 0.15$ in order to see good long term buying opportunities. To put this opportunity into retrospective, 100$ invested at a 0.10$ low would equate to a return of 3000$ at the conservative recent high of 3$. With regards to the bearish price predictions, we do not mean to be pessimists but rather that this is an actual reality and its good to keep this in mind in your trading plan.
4 Hourly Chart
- On the 4 hourly chart, we can see that MA’s are being used as strong support and the chances of breaking above the 0.25$ resistance level seem greater. EMA 200 indicator has been used as support from the 0.21$ level and this is also a great indication of the buying pressure in the market. From this we can say that a good entry would be just above the 0.26$ mark with take profit at 0.27$ and 0.31$. An early entry is also possible at current price of 0.238$ with STOPS at 0.213$. None the less, I would advice the conservative entry of a break above the 0.26$ mark as there is some bearish consolidation below the 0.25$ price resistance and a mark of strength in the bullish direction would only come after a break of the 0.25$ price level.
1 Hourly Chart
- On the hourly chart, we see further confirmation of bullish price action by the fact that momentum indicators are in bullish territory ready for lift off. We can see that MA’s are being used as support just under the 0.25$ resistance level with good bullish candles in practise. For those looking to enter early, this is a good indication that a early entry with targets to 0.27$ EMA resistance and 0.31$, isn’t such a bad idea with STOPS at 0.21$ and gives us pretty good risk:reward.
CHECK OUT OUR TELEGRAM CHANNEL DOWN BELOW FOR TIMELY UPDATES AND EXACT ENTRIES!
Daily chart
- On the price chart, we can see that XRP is just below main resistance region of 0.25$. This price level was previously a support zone but as we know, once supports are broken they become ceilings. It is extremely difficult for XRP to now break upwards of this level and if this occurs this is a good indication of bullish momentum to highs of 0.31$, which once again is another key resistance zones. None the less, we can observe that EMA 200, which has historically kept price down is currently at 0.27$ and even in the case that we break above the 0.25$ price resistance, we will have quite a tough time trying to break through this resistance at 0.27$. This is all an indication that there are many near term obstacles for XRP to overcome and the chances are even if it overcomes these obstacles, there is very little chance of breaking above the 0.31$ mark. In essence, there is short term bullish price action on BTC which could take us to highs of 9.4k and 10.2k and this would translate into XRP price with a rise to highs of 0.31$. Furthermore, XRP is already in overbought territory across momentum indicators and this would suggest that there is no way that we could see breaks above 0.31$ to the upside.
- Short opportunities would arise again once we see resistance at the 0.31$ price level and this would give us to see a momentous trade with targets to 0.18$ to the downside from 0.31$!
- In the long run, we expect XRP to topple down to 0.10$ and 0.15$ in order to see good long term buying opportunities. To put this opportunity into retrospective, 100$ invested at a 0.10$ low would equate to a return of 3000$ at the conservative recent high of 3$. With regards to the bearish price predictions, we do not mean to be pessimists but rather that this is an actual reality and its good to keep this in mind in your trading plan.
4 Hourly Chart
- On the 4 hourly chart, we can see that MA’s are being used as strong support and the chances of breaking above the 0.25$ resistance level seem greater. EMA 200 indicator has been used as support from the 0.21$ level and this is also a great indication of the buying pressure in the market. From this we can say that a good entry would be just above the 0.26$ mark with take profit at 0.27$ and 0.31$. An early entry is also possible at current price of 0.238$ with STOPS at 0.213$. None the less, I would advice the conservative entry of a break above the 0.26$ mark as there is some bearish consolidation below the 0.25$ price resistance and a mark of strength in the bullish direction would only come after a break of the 0.25$ price level.
1 Hourly Chart
- On the hourly chart, we see further confirmation of bullish price action by the fact that momentum indicators are in bullish territory ready for lift off. We can see that MA’s are being used as support just under the 0.25$ resistance level with good bullish candles in practise. For those looking to enter early, this is a good indication that a early entry with targets to 0.27$ EMA resistance and 0.31$, isn’t such a bad idea with STOPS at 0.21$ and gives us pretty good risk:reward.
CHECK OUT OUR TELEGRAM CHANNEL DOWN BELOW FOR TIMELY UPDATES AND EXACT ENTRIES!
Comment:
XRP USD UPDATE
- In our XRP USD breakdown, we stated that it would prove difficult to break through the 0.25$ resistance and that we should only long with a close above this resistance and as stated, we have seen a rejection from the 0.25$ level. Thus, our long strategy had not come to light.
- We had also stated that, if you are to enter early, then you should place your stop loss at 0.21$ with an entry at 0.23$ with highs created during this trade at 0.245$.
- Now, we expect some stop hunting to occur all the way down to the 0.2122$ price level and thus your stop loss may not get triggered but this is just to bare in mind in line with bearish price action on BTC.
- For those of you that stayed on the conservative side, well done and we are still waiting for a conformational break above the key 0.25$ resistance level to take long to 0.31$.
- In our XRP USD breakdown, we stated that it would prove difficult to break through the 0.25$ resistance and that we should only long with a close above this resistance and as stated, we have seen a rejection from the 0.25$ level. Thus, our long strategy had not come to light.
- We had also stated that, if you are to enter early, then you should place your stop loss at 0.21$ with an entry at 0.23$ with highs created during this trade at 0.245$.
- Now, we expect some stop hunting to occur all the way down to the 0.2122$ price level and thus your stop loss may not get triggered but this is just to bare in mind in line with bearish price action on BTC.
- For those of you that stayed on the conservative side, well done and we are still waiting for a conformational break above the key 0.25$ resistance level to take long to 0.31$.
Comment:
XRP USD UPDATE
- On our last XRP USD update, we warned that price will be heading towards the 0.21$ level but we only saw lows created at the 0.22$ level instead. Those that had entered the long trade to the 0.31$ price level early should therefore still be in this trade without getting stop hunted.
- For the conservative of us, I advised that we wait for a break above the 0.25$ resistance level before entering longs to the 0.31$ price target. This has proved useful as you had avoided a lot of heart ache with resistance at the 0.25$ level proving strong as expected.
- In our last XRP breakdown, we stated that the largest area of resistance of all before the main 0.31$ resistance level was @ 0.27$ with EMA 200 resistance laying at this level ; and this still proves true.
- We would advice for you to move your stop loss up to the 0.22$ price level, if you are LONG early and if you are thinking of longing now, we would also give the same advice here. The risks of going long at current price are not as high as before but there is always a risk of going long @ current price unless we break the 0.25$ level. That being said there is the opportunity to long for a short period to the 0.245$ price level.
- XRP bull move will be exhausted out at the 0.31$ level and this is when all the FOMO family will anticipate to long and inevitably lose money to the market ; whereas we have planned early and are not trading with our emotions!
- On our last XRP USD update, we warned that price will be heading towards the 0.21$ level but we only saw lows created at the 0.22$ level instead. Those that had entered the long trade to the 0.31$ price level early should therefore still be in this trade without getting stop hunted.
- For the conservative of us, I advised that we wait for a break above the 0.25$ resistance level before entering longs to the 0.31$ price target. This has proved useful as you had avoided a lot of heart ache with resistance at the 0.25$ level proving strong as expected.
- In our last XRP breakdown, we stated that the largest area of resistance of all before the main 0.31$ resistance level was @ 0.27$ with EMA 200 resistance laying at this level ; and this still proves true.
- We would advice for you to move your stop loss up to the 0.22$ price level, if you are LONG early and if you are thinking of longing now, we would also give the same advice here. The risks of going long at current price are not as high as before but there is always a risk of going long @ current price unless we break the 0.25$ level. That being said there is the opportunity to long for a short period to the 0.245$ price level.
- XRP bull move will be exhausted out at the 0.31$ level and this is when all the FOMO family will anticipate to long and inevitably lose money to the market ; whereas we have planned early and are not trading with our emotions!
Comment:
XRP USD UPDATE
- On our last XRP/USD update, we pointed out that it was fine to long from current price @ 0.23$ to the 0.25$ resistance level on a short term basis - this went as instructed.
- None the less, we also pointed out for longer term trades to the 0.31$ resistance level, we should wait for a break above the 0.25$ resistance level. In this instance, we got a spike in price just above the 0.25$ resistance before there was a reversal in price given the rejection of BTC from the 9200$ resistance.
- Now, we still expect XRP to break above the 0.25$ resistance before m making its way to 0.31$ level. The EMA 200 resistance has reduced from the 0.27$ level and is on its way to level with the 0.25$ resistance level on the daily ; this is a positive sign of our bullish analysis coming into play.
- We would like to add that, XRP is now at a stronger support level on momentum indicators on the 4 hourly charts. However, it would be good to long XRP only in the case that it closes above the 0.25$ resistance level and not just a spike above this level. We can adjust our stop loss for this position from 0.21$ to 0.22$ as EMA 200 support on the 4 hourly has ascended but it isn’t a problem if we keep our stop loss area the same at initial level ; and this in fact gives us greater protection from stop hunting.
- On our last XRP/USD update, we pointed out that it was fine to long from current price @ 0.23$ to the 0.25$ resistance level on a short term basis - this went as instructed.
- None the less, we also pointed out for longer term trades to the 0.31$ resistance level, we should wait for a break above the 0.25$ resistance level. In this instance, we got a spike in price just above the 0.25$ resistance before there was a reversal in price given the rejection of BTC from the 9200$ resistance.
- Now, we still expect XRP to break above the 0.25$ resistance before m making its way to 0.31$ level. The EMA 200 resistance has reduced from the 0.27$ level and is on its way to level with the 0.25$ resistance level on the daily ; this is a positive sign of our bullish analysis coming into play.
- We would like to add that, XRP is now at a stronger support level on momentum indicators on the 4 hourly charts. However, it would be good to long XRP only in the case that it closes above the 0.25$ resistance level and not just a spike above this level. We can adjust our stop loss for this position from 0.21$ to 0.22$ as EMA 200 support on the 4 hourly has ascended but it isn’t a problem if we keep our stop loss area the same at initial level ; and this in fact gives us greater protection from stop hunting.
- As stated in our BTC USD breakdown, the blue ascending fan trend line has been used as support and it was previously a resistance.
- None the less, we have entered a ascending wedge formation on the 4 hourly chart and this is constricting price below 8,880$ price level.
- Therefore, we can expect bearish activity to the 8550-8500$ support level in line with the supporting trend line of the wedge and the fan structure.
- Thereafter, we can presume that bullish activity will continue onto the 9200$ price level at first.
- We could essentially max out at the 9200$ price level and this would mean that we break to the downside of the ascending wedge, which is what traditionally occurs and back down to the 7,700$ mark to meet EMA 200 support on the 4 hourly chart.
- A break above the 9200$ level would indicate a rise to the 10,218$ resistance level of the descending wedge on the bigger timeframe.