Trade Recommendation: Ripple
The Ripple/Bitcoin pair (XRP/BTC) has been bearish for almost all of 2018. It has been generating lower highs and lower lows in terms of price as well as momentum in the RSI. As of this writing, the market’s down by over 60% year to date. However, it appears that XRP/BTC is about to come alive.
Technical analysis show that Ripple/Bitcoin is gearing up to break out of the large falling wedge pattern on the daily chart. The breakout will most likely be triggered by tight supply.
The pair is in extreme oversold territory. This condition will keep supply a bit dry in the coming days. As it happens, XRP/BTC is also moving towards an area where demand exceeds supply at a price of 0.000053. This is a price point where the market broke out of a cup and handle pattern in December 2017 and started its bull run. In technical analysis, former resistance levels become firm support levels.
Lastly, we can see the market respect stochastic support of 6.66. Historically, XRP/BTC has bounced strongly after touching this level.
The strategy is to buy as close to 0.000053 as possible. If bulls succeed in defending the support, we can expect a strong rally to our initial target of 0.0000775. We’ll revisit this trade once the initial target is met. There might be a chance to buy on dips.
The process may take a month.
Daily Chart of Ripple/Bitcoin on Binance
As of this writing, the XRP/BTC pair is trading at 0.00005522 on Binance.
Summary of Strategy
Buy: As close to 0.000053 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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