Trade Recommendation: Ripple on Strong Bullish Continuation

Ripple (XRP) ended its six-month consolidation period when it breached resistance at 0.40 on December 12, 2017 on Bitstamp’s daily chart with over five times its average daily volume. Ripple is currently consolidating as breakout buyers at 0.40 are either lightening positions or getting out of the market. While some profit is better than no profit, we believe that this altcoin offers more potential for gains.  

Technical analysis show that the Ripple/USD market is creating a strong bullish continuation pattern on the daily chart. Breakout is not yet in sight with the market still overbought. It may still go to as low as 0.61 which is a good opportunity for you to place buy orders.

The strategy is to buy as close to 0.61 as possible. You can also wait for breakout at 0.85 but we recommend buying as low as you can to limit your risks. The market is not going to run away anytime soon so you have some time to buy cheap. Once consolidation is over, we have a target of 1.25.

Daily Ripple/USD Chart on Bitstamp

As of this writing, the Ripple/Dollar pair is trading at 0.744 on Bitstamp.

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.