I originally posted this idea several days ago, but it was flagged b/c I linked one of my social media accounts. Apologies for any typos - the format of my post got jacked up after copying/pasting. Crypto's going to break one way or another from current levels. Bitcoin has a wide supply zone (not super strong) 86267.86-92920.42, so watch how it reacts...
Strictly technical setup here. Near-term demand/buy zones were good for bounces across the crypto space. However, buying has been fairly tepid. Given the technical structure for many crypto underlyings, this is unsurprising (addressed in
DOGE (DOGEUSD), 
BTC, 
TOTAL ideas). Barring a catalyst, it seems more likely that crypto (and risk assets generally) will trade lower before higher.
Unfortunately for bulls,
XRPUSD has levels of daily supply near current price. Per the 1D chart, sell zone = 2.3265-3.4106, 2.5032-2.6487. Additional sellers are likely lurking between 2.6487 and 3.0153, though LTFs need to be analyzed for identification. If the RSI is printing < 60/65 if/when price reaches the abovementioned ranges, XRP could roll over and commence another bearish impulse wave. Use micro-timeframes to watch for signs of uptrend violation/termination + to confirm any short entries/long exits.
To bolster positional confidence, observe other cryptos, especially larger market caps. Correlative behavior can be a very helpful trading "odds enhancer". If other majors rally w/ significant volume/momentum, XRP will likely follow. Conversely, ifBTCUSD, 
ETHUSD (ETH), etc. fizzle out, expect XRP to do the same.
If this idea materializes and shorts regain control, daily demand = 1.5414-1.2843, 1.1222-1.0033. Fib retracements reinforce the aforementioned buy zones. Because of the explosive nature of XRP's 2024 rally, the monthly/weekly charts have "tradeable voids" (expanded-range candlesticks). While traditional technicals tout large candles, they're a double-edged sword. Their elongated nature is often reflective of limited trading and gaps in order flow, which can have a vacuum-like effect if/when prices correct. It's great when you're on the right side of the trade creating the candles, but there's also not a lot of unfilled orders to stop price from moving rapidly in the opposite direction. So, if XRP sells off, don't be surprised if price moves quickly.
I'm a fan of confirmation entries vs. "catching a falling knife". Referencing RSI momentum + using micro-TFs to ID trend reversal signals can help prospective buyers reduce risk (and/or increase position size). When volatility strikes, preservation is paramount.
Thanks for reading! Feedback/engagement welcome.
Jon
Strictly technical setup here. Near-term demand/buy zones were good for bounces across the crypto space. However, buying has been fairly tepid. Given the technical structure for many crypto underlyings, this is unsurprising (addressed in
DOGE (DOGEUSD), BTC, TOTAL ideas). Barring a catalyst, it seems more likely that crypto (and risk assets generally) will trade lower before higher.Unfortunately for bulls,
XRPUSD has levels of daily supply near current price. Per the 1D chart, sell zone = 2.3265-3.4106, 2.5032-2.6487. Additional sellers are likely lurking between 2.6487 and 3.0153, though LTFs need to be analyzed for identification. If the RSI is printing < 60/65 if/when price reaches the abovementioned ranges, XRP could roll over and commence another bearish impulse wave. Use micro-timeframes to watch for signs of uptrend violation/termination + to confirm any short entries/long exits.To bolster positional confidence, observe other cryptos, especially larger market caps. Correlative behavior can be a very helpful trading "odds enhancer". If other majors rally w/ significant volume/momentum, XRP will likely follow. Conversely, if
BTCUSD, ETHUSD (ETH), etc. fizzle out, expect XRP to do the same.If this idea materializes and shorts regain control, daily demand = 1.5414-1.2843, 1.1222-1.0033. Fib retracements reinforce the aforementioned buy zones. Because of the explosive nature of XRP's 2024 rally, the monthly/weekly charts have "tradeable voids" (expanded-range candlesticks). While traditional technicals tout large candles, they're a double-edged sword. Their elongated nature is often reflective of limited trading and gaps in order flow, which can have a vacuum-like effect if/when prices correct. It's great when you're on the right side of the trade creating the candles, but there's also not a lot of unfilled orders to stop price from moving rapidly in the opposite direction. So, if XRP sells off, don't be surprised if price moves quickly.
I'm a fan of confirmation entries vs. "catching a falling knife". Referencing RSI momentum + using micro-TFs to ID trend reversal signals can help prospective buyers reduce risk (and/or increase position size). When volatility strikes, preservation is paramount.
Thanks for reading! Feedback/engagement welcome.
Jon
Note
XRP could be beginning to roll over alongside other cryptos. Let's see what happens.Note
XRP seeing a strong upside move here. As stated in the original post, this idea was a confirm short. Daily sell zone 2.5032-2.6487. Will keep an eye on Ripple and other crypto as they reach corresponding zones, but given upside momentum, may invalidate the short-side play.Trade active
Daily supply (2.5032-2.6487) tagged and XRP is seeing selling. If XRP fails to hold 2.2239, we could be heading lower ( < 1.7938). Hold on to your hats.Note
Uh oh... Look out below? So far, playing out per my thesis. Doesn't mean it will work, but the idea remains valid!Note
Here. We. Go.Note
Short working wonderfully. Can always trail stops, but no reason this shouldn't continue down, per weekly.
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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.