XRP/USD Short Trade Setup Analysis (12H Timeframe - Bitstamp)🔍 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.