Trade Recommendation: Ripple
It’s do or die time for Ripple (XRP/BTC). If bulls were to flex their muscles, the ensuing pump can be intense. On the other hand, should bears dominate, the dump can send the market to a downward spiral. From our point of view, the current market structure offers considerable rewards with limited risks as long as proper stops are followed. These are the reasons why we are happy to long Ripple.
Technical analysis shows that XRP/BTC is printing a downward channel on the daily chart. While the pattern has bearish implications, market sentiment can quickly change once bulls take out the diagonal resistance. At this point, Ripple has touched the diagonal resistance five times in less than three months. This means that the resistance is significantly weakened. Nevertheless, bulls must still show grit and determination to finally break out of the pattern.
Fortunately for bulls, demand is on their side. So far, Ripple has managed to stay above the 200-day moving average. This shows that participants are respecting this support. On top of that, Ripple is approaching strong support of 0.000078. Should the market dip to this level, we believe that the strong demand will likely propel Ripple out of the downward channel.
The strategy is to buy as close to 0.000078 support as possible. If XRP/BTC manages to stay above this support, the market will likely generate the momentum to break out of the downward channel and hit our targets of 0.000091 and 0.000102.
The process may take less than a month.
Daily Chart of Ripple/Bitcoin on Binance
As of this writing, the Ripple/Bitcoin pair is trading at 0.00008086 on Binance.
Summary of Strategy
Buy: As close to 0.000078 as possible.
Target: 0.000091 and 0.000102.
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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