XRP Is Very Close To Hit The Key Level Resistance $0.31Taking Bounce From The Support Of Wedge:
On week chart the Ripple is moving in a falling wedge . The formation of this chart pattern was started in Aug 2018 and now after Aug 2018 the price action has hit the support of this wedge in Dec 2019 and with hitting at support of wedge the priceline has also hit the lower band of Bollinger bands and now it is bounced from the support of wedge at this time it has reached at middle of wedge
The Volume Profile Showing More Bullish Trend Continuation:
I have placed volume profile on complete price action of this wedge that is showing that trader's interest is very low at the support of the wedge and high upto $0.49 we have also POC of this volume profile at $0.31.
Oscillators And Indicators Are Turned Strong Bullish:
Previously on week chart the moving average convergence divergence (MACD) was turning bullish by giving weak bearish signals and relative strength index (RSI) was also oversold and stochastic had given bull cross from oversold zone.
Now the stochastic and RSI are still strong bullish and reached almost half the body of stochastic and RSI if this strong trend will be continued then we can see RSI and stochastic visiting over bought zone soon.
The MACD is now turned strong bullish as we can see the histogram is changed green from red and the moving averages of MACD has also given bull cross.
Directions And Momentum Are Shifted To Bulls From Bears And Bearish Zone Is Finally Chopped:
On week chart in directional movement the +DI and –DI has formed bull cross, the momentum is being shifted from bearish to bullish and soon we can witness the green bar in momentum indicator.
The chop zone was strong bearish since July 2019 and finally it has turned weak bearish, when last time in May 2019 it was turned bullish then the XRP surged more than 73%.
Exponential Moving Averages Are Giving Up Trend Signals:
On 4 day chart after hitting $0.51 in Jun 2019 the exponential moving average 10 crossed down the EMA 20 and formed bear cross since then the candle sticks are being closed below these EMAs once in Nov 2019 the candle sticks were likely to close above the EMA 10 and EMA 20 but at that time we did not receive a bull cross between these two EMAs therefore the attempt to close above these EMAs was unsuccessful and price action again pulled down to $0.17600 that is the lowest price since Jan 2018 up till now.
Now finally we have received a bull cross between EMA 10 and EMA 20 on current 4 day candle stick which is started on 6th Feb 2019 this can be the decision maker priceline coz so far the candle stick is not closed and still continue if it will be closed above these EMAs and we will still have bull cross between EMA 10 and 20 then it will be a proper trend reversal signal indicating towards bullish trend.
An Alligator Opened Mouth A Very Strong Bullish Signal:
On daily chart If we see the movement of simple moving averages with time period of 25, 50, 100 and 200 then 25 SMA has crossed up 50 and 100 SMAs and moving up to cross up 200 SMA now and the 50 SMA is also moving up behind the 25 SMA to cross up the 100 SMA and soon it will cross up the 200 SMA as well and this golden cross can produce a very strong bullish wave because golden cross between 50 simple moving average with 200 SMA is one of the most favorite among the professional traders and it attracts them to buy.
Once we have the order of moving averages from down to top as below:
200 SMA then 100 SMA then 50 SMA and then 25 SMA above all
Then a complete alligator’s mouth will be opened then the most powerful rally can be started.
Like when the alligator’s mouth was opened in Jun 2019 it leaded the price upto $0.51 that was around 80% big move.
Ichimoku Cloud:
Upto 2 day chart the ichimoku cloud is giving bullish signals the Lagging span has crossed up the price action and attempting to cross up the cloud, the price action has also crossed up the cloud and conversion line has formed bull cross with base line after these bullish indications we can expect that the bullish trend with be continued.
Moving Towards Key Level Resistance At $0.31:
Now after hitting the support of falling wedge pattern Ripple has surged 63% and now it is very close to the key level resistance of $0.31.
This resistance is very strong as the price action of XRP has tried three times to breakout this level but failed to do so, the 1st attempt was in Sep 2019, second in Oct 2019 and third attempt has been made on Nov 2019.
A Bullish Trend Continuation Pattern Cup & Handle Is Likely To Be Formed:
This time we can expect the breakout from this key level resistance of $0.31 because on day chart a Cup & Handle pattern is likely to be formed.
The wave down and wave up are moved very softly without any hard corners or V shape and forming a proper round shaped body of cup and this is a fact as much the shape of cup will be round shaped as much the pattern will be confirmed now there are strong chances of pull back after hitting the resistance at $0.31 and this pull back will form the handle of this cup then we can see a down channel formation or pennant or bull flag but this pull back can be a temporary bear move coz finally the price action takes bullish divergence from the handle and this bullish divergence always leads the price action to breakout the resistance of cup which is at $0.31.
Conclusion:
This time the Ripple is moving with Bitcoin which is positive on the contrary previous trend of Jun 2019 when the BTC was moving up and Ripple was moving down. There is a pullback expected before any breakout but we shouldn’t be worried coz all indicators are in favor of bullish trend rather than bearish trend. Overall green trend will be continued.
Regards,
Atif Akbar (moon333)
