XRP/USDT 4H Timeframe AnalysisXRP/USDT 4H Timeframe Analysis
Trend Analysis
On the 4-hour timeframe, XRP/USDT is in an uptrend, forming a symmetrical triangle pattern. A downtrend line with three confirmed touches served as solid resistance, eventually breaking out and forming the symmetrical pattern.
Recently, the price broke above the minor key resistance at 2.4800, signaling bullish momentum. After accumulating buyers’ orders, the price briefly dipped to hunt liquidity below the minor resistance, where buyers had placed stop-losses.
Following the liquidity hunt, the price rebounded strongly, breaking above the minor resistance again. The current price action suggests potential bullish continuation, especially as the market reacts to news impacting XRP’s legal developments.
Price Action Expectation:
Our objective is to wait for a retest of the minor resistance (now turned support) at 2.5040.
Wait for the price to consolidate around this level, confirming strong buyer interest.
Monitor for a bullish reaction at the retest point, which validates the continuation of the uptrend.
After the retest, expect the price to rally toward the next significant resistance level.
Trade Setup-
Trade Type: Buy Limit (Retest Entry)
Entry: 2.5040 (upon confirmation of the retest)
Stop Loss: 2.3350 (below the liquidity zone to avoid false breakouts)
Take Profit: 2.9070 (next significant resistance level)
This setup requires patience and discipline to ensure all conditions are met before entering the trade.
News Catalyst
The recent increase in buying pressure for XRP is attributed to a notable update regarding Ripple's legal battle with the SEC. A prominent lawyer's insights on the SEC’s appeal have boosted market sentiment, reinforcing confidence in Ripple's position. This news has supported XRP’s bullish momentum and aligns with the current technical outlook.
Conclusion:
XRP/USDT shows strong bullish potential supported by a clear breakout pattern and positive news sentiment. The strategy emphasizes disciplined execution and proper validation of the retest to confirm the setup.
Risk Management:
Maintain a 1:2+ risk-to-reward ratio to optimize trade outcomes.
Position size should align with your account equity to manage risk effectively.
Monitor liquidity zones closely to avoid premature stop-outs.
Trading involves significant risks and is not suitable for all investors. Always:
Seek advice from a financial professional if unsure about trading decisions.
