Trade Recommendation: Ripple
Our September 9, 2018 trade recommendation for Ripple (XRP/USD) hit its mark on September 20 when the pair climbed to as high as $0.50297. This enabled the pair to break out of the large falling wedge on the daily chart. In ten days, those who followed the trade suggestion grew their investments by anywhere from 40% to 100%.
What we did not expect, however, was the surge in price and volume on September 21. This enabled Ripple to move as high as $0.79132. Though we left money on the table, we knew that there’s always a chance to make up for it. After all, the market has managed to end its nine-month downtrend.
Technical analysis shows that Ripple is on the verge of breaking out of a bullish pennant on the daily chart. Breakout from this pattern would be a signal to the market that consolidation is over. This will attract breakout traders and momentum traders who are looking to ride the next leg up.
The strategy is to buy the breakout at $0.56 after the market generates volume of 150 million Ripple units. Some of those who bought the falling wedge breakout may still be taking profits. The market needs buyers to absorb the selling pressure.
Once breakout is complete, the coin will likely rally to our target of $0.80. The process may take less than a month.
If the market breaks out as expected, there’s a very good chance the Ripple will become parabolic. Let’s monitor the market.
Daily Chart of Ripple/US Dollar on Bitfinex
As of this writing, the Ripple/ US Dollar pair is trading at $0.56669 a it begins the breakout on Bitfinex.
Summary of Strategy
Buy: Breakout at $0.56 after the market prints volume of 150 million Ripple units.
Stop: $0.54 after the breakout.
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.
Featured image courtesy of Shutterstock.