XRP Descending triangle
Updated
We are seeing a descending triangle pattern on XRP hourly time frame. Usually this pattern is a sign of a continuation on a downtrend, but there are some interesting things to analyze.
- Stochastic is in the low area of the channel, and has just crossed, suggesting an upside movement is near (not matter if it is not to agressive but, considering that we are in the final side of the triangle, it do not need a huge bullish movement to break the pattern).
- The triangle fails to break at 2/3 of the pattern and has gone to the end of the Apex, this, (in some cases) can cause a failure in the pattern as the psychology of the market changes, causing a huge movement to the opposite side.
- There you can see a clearly divergence in RSI and the actual price, indicating that it could go upside any time from now in the short term, and, considering that we are just moving at the end of the Apex, any upside movement that close above the downtrend line, may cause a trend reversal and a failed pattern.
In the other way, considering the weekend, we might see not to much trading, and , if it doesn´t break in a convincing downside movement, the pattern will be cancelled and XRP will continue to move sideways over the weekend.
- Stochastic is in the low area of the channel, and has just crossed, suggesting an upside movement is near (not matter if it is not to agressive but, considering that we are in the final side of the triangle, it do not need a huge bullish movement to break the pattern).
- The triangle fails to break at 2/3 of the pattern and has gone to the end of the Apex, this, (in some cases) can cause a failure in the pattern as the psychology of the market changes, causing a huge movement to the opposite side.
- There you can see a clearly divergence in RSI and the actual price, indicating that it could go upside any time from now in the short term, and, considering that we are just moving at the end of the Apex, any upside movement that close above the downtrend line, may cause a trend reversal and a failed pattern.
In the other way, considering the weekend, we might see not to much trading, and , if it doesn´t break in a convincing downside movement, the pattern will be cancelled and XRP will continue to move sideways over the weekend.
Note
As we said, the pattern has failed and and very strong bullish movement has been done, this, mixed with the breakout of the triangle and the breakout of the downtrend is a 90% sure signal of a trend reverse.We may see BTC going up to $1.8 resistance over the next week.
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