Trade Recommendation: Ripple
Ripple (XRP/BTC) is one of the few altcoins that have stood strong in the height of the bear market. It climbed as high as 0.00010523 on November 20, 2018, after dropping to as low as 0.00006077 on October 12, 2018. While almost every crypto was plummeting, XRP grew by over 73% in a little over a month.
At that price point, however, Ripple had to correct. It was overbought on the 4-hour chart. In addition, a large bearish divergence was seen on the 4H RSI. With signs of bullish exhaustion, Ripple pulled back. Nevertheless, this retracement gives us a chance to buy the resumption of the uptrend.
Technical analysis shows XRP/BTC breached resistance of 0.000089 today, December 8, 2018. The price action triggered the break out from the falling wedge on the on the 4H chart. With the move above the resistance, Ripple climbed as high as 0.000093 today.
As of this writing, Ripple is retesting the breakout. It appears that bulls are ready to put up a fight. Fortunately, technical indicators are working in their favor.
The lower timeframe RSIs are close to oversold conditions. Also, volume is starting to pick up. This is a sign that buyers are stepping in. More importantly, the 200-day moving average is crawling below the 4H candle. It will act as a support that will help keep Ripple’s uptrend alive.
The strategy is to buy the retest of the breakout as close to 0.000089. If bulls defend this level, they will likely spark a rally to our target of 0.000115.
The process may take a month.
Daily Chart of Ripple/Bitcoin on Binance
As of this writing, the Ripple/Bitcoin pair is trading at 0.00008912 on Binance.
Summary of Strategy
Buy: As close to 0.000089 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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