Trade Recommendation: Ripple
It’s been a while since we published a trade recommendation on Ripple (XRP/USD). The altcoin was not giving us clear signals, which is why we decided to wait until it provided a convincing setup. We’re getting the setup today.
Technical analysis shows that XRP/USD has taken out resistance of $0.38. This triggered the breakout from a large Adam and Eve double bottom pattern on the daily chart. The breakout looks valid because it was pushed by heavy volume. As a result, Ripple climbed as high as $0.4455 today, May 15, 2019.
Now, the breakout is likely to make you feel the fear of missing out. Control that impulse because Ripple is starting to show signs of weakness. The daily candle has a wick on top of its body. This suggests the presence of sellers. On top of that, the daily RSI is in overbought territory. These are signals that tell us that a pullback is likely.
The strategy is to buy on dips as close to $0.38 as possible. The retest of this level is bullish. It will cement the six-month-long consolidation below $0.38.
As long as XRP/USD trades above $0.38, it will likely rally to our initial target of $0.46. Take that out and the next target is $0.57.
The process may take less than a month.
Daily Chart of Ripple/US Dollar on Bitfinex
As of this writing, the Ripple/US Dollar pair is trading at $0.42389 on Bitfinex.
Summary of Strategy
Buy: As close to $0.38 as possible.
Targets: $0.46 and $0.57.
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.