🔍 Market Context:
- XRP/USD is currently experiencing a sharp decline, breaking below key trendline support.
- The price has dropped significantly, reflecting bearish momentum, and is now approaching critical Fibonacci retracement levels.
- Fibonacci retracement levels and trendline intersections suggest potential areas of support and resistance for a possible reversal or continuation.
📊 Trade Entry Criteria:
- The price has broken below a key ascending trendline, confirming bearish sentiment.
- A bearish continuation is expected if the price remains below the broken trendline and key support zones.
- A possible reversal could occur if price reclaims the trendline and moves above 2.45 resistance.
🎯 Trade Targets & Risk Management
🔴 Bearish Scenario:
- Entry Price: Below 2.40 USD (break of support)
- Take Profit (TP1): 1.94 USD (50% Fibonacci retracement)
- Take Profit (TP2): 1.6 USD (61.8% Fibonacci retracement)
- Take Profit (TP2): 1 - 1.2 USD (76.4% Fibonacci retracement and psychological support)
- Stop Loss (SL): Above 2.45 USD (previous structure resistance)
🟢 Bullish Scenario:
- Entry Price: Above 2.45 USD (trendline recovery)
- Take Profit (TP1): 2.56 USD (61.8% Fibonacci retracement)
- Take Profit (TP2): 2.69 - 2.86 USD (50%-38.2% Fibonacci resistance levels)
- Stop Loss (SL): Below 2.38 USD (confirmation of bearish continuation)
📉 Profit Target Justification:
- The bearish target aligns with Fibonacci retracement zones and previous price action, suggesting further downside if the break holds.
- The bullish target is supported by Fibonacci levels and previous resistance-turned-support areas.
📌 Summary
✔ Price is at a crucial support level, with a confirmed bearish breakdown.
✔ Fibonacci levels provide clear confluence for both bullish and bearish trade setups.
✔ Risk-to-reward ratio is favourable, with a well-defined invalidation zone.
🔻 Invalidation:
- If price moves back above 2.45 USD, the bearish setup is invalidated.
- If price fails to reclaim 2.40 USD, the bullish recovery scenario weakens.
- XRP/USD is currently experiencing a sharp decline, breaking below key trendline support.
- The price has dropped significantly, reflecting bearish momentum, and is now approaching critical Fibonacci retracement levels.
- Fibonacci retracement levels and trendline intersections suggest potential areas of support and resistance for a possible reversal or continuation.
📊 Trade Entry Criteria:
- The price has broken below a key ascending trendline, confirming bearish sentiment.
- A bearish continuation is expected if the price remains below the broken trendline and key support zones.
- A possible reversal could occur if price reclaims the trendline and moves above 2.45 resistance.
🎯 Trade Targets & Risk Management
🔴 Bearish Scenario:
- Entry Price: Below 2.40 USD (break of support)
- Take Profit (TP1): 1.94 USD (50% Fibonacci retracement)
- Take Profit (TP2): 1.6 USD (61.8% Fibonacci retracement)
- Take Profit (TP2): 1 - 1.2 USD (76.4% Fibonacci retracement and psychological support)
- Stop Loss (SL): Above 2.45 USD (previous structure resistance)
🟢 Bullish Scenario:
- Entry Price: Above 2.45 USD (trendline recovery)
- Take Profit (TP1): 2.56 USD (61.8% Fibonacci retracement)
- Take Profit (TP2): 2.69 - 2.86 USD (50%-38.2% Fibonacci resistance levels)
- Stop Loss (SL): Below 2.38 USD (confirmation of bearish continuation)
📉 Profit Target Justification:
- The bearish target aligns with Fibonacci retracement zones and previous price action, suggesting further downside if the break holds.
- The bullish target is supported by Fibonacci levels and previous resistance-turned-support areas.
📌 Summary
✔ Price is at a crucial support level, with a confirmed bearish breakdown.
✔ Fibonacci levels provide clear confluence for both bullish and bearish trade setups.
✔ Risk-to-reward ratio is favourable, with a well-defined invalidation zone.
🔻 Invalidation:
- If price moves back above 2.45 USD, the bearish setup is invalidated.
- If price fails to reclaim 2.40 USD, the bullish recovery scenario weakens.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.