Trade Recommendation: Ripple
Our April 2, 2018 trade recommendation for the Ripple/US Dollar pair (XRP/USD) hit its mark on April 13 when it went as high as $0.70813. Those who bought positions when the recommendation was released grew their investments by over 41%.
While the pair was able to go above our target, we expected that the rally wouldn’t be sustainable. Our expectations were met on May 9, 2018 when XRP/USD broke $0.80 support. This started a waterfall event as those who bought above $0.80 rushed to cut their losses.
XRP/USD has looked bearish the last couple of months. The good news is that a rally may be in sight.
Technical analysis show that XRP/USD may be bottoming out at $0.45 support. This view comes after the pair went as low as $0.42411 on June 29 but bulls managed to lift the market above the support. In addition, the pair is coming off a strong bear run that generated two bearish flags and one bearish pennant. Based from experience, bears are very likely to be exhausted after the third push down.
Furthermore, technical indicators are flashing bullish signals. A long bullish divergence can be spotted on the daily MACD along with a bullish cross. Plus, the 4-day, 8-day, and 21-day moving averages are below the daily candle trending up.
The strategy is to buy as close to $0.45 possible. If bulls can hold on to the support, they will spark a strong rally to our target of $0.70. The process may take a month.
Daily Chart of Ripple/US Dollar on Kraken
As of this writing, the Ripple/US Dollar pair is trading at $0.4968 on Kraken.
Summary of Strategy
Buy: As close to $0.45 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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