Trade Recommendation: Ripple (XRP)

Ripple

Our June 15, 2019 trade recommendation for Ripple (XRP/USD) hit its initial target. On June 22nd, the cryptocurrency climbed as high as $0.51. Those who followed the trade recommendation grew their investments by over 40% in about a week.

The second target of $0.62 still applies but we’re publishing fresh guidelines because Ripple is forming a massive reversal pattern on the daily chart. If our read is correct, we can expect the cryptocurrency to surge in the next few weeks.

Technical analysis shows that XRP/USD has broken out of a bull flag on the daily chart when it took out resistance of $0.465 on June 22nd. However, the breakout rally quickly faded and the market appears to be in the midst of a throwback. We have identified a possible entry point for those who want to buy this dip.

More importantly, Ripple is painting large Adam and Eve double bottom pattern on the daily chart. The structure is massive with a neckline at $0.62. This is the primary reason we released this trade recommendation today. If Ripple rallies and takes out $0.62, bulls will generate tremendous momentum to reach our second price target.

The strategy is to buy on dips as close to $0.425 as possible. As long as XRP/USD trades above this level, bulls will regain the horizontal resistance of the bull flag. This will give them the momentum to climb to our initial target of $0.62. Take that out and $0.90 is next.

The process may take more than a month.

Daily Chart of Ripple/US Dollar on Bitfinex

Ripple crypto chart
As of this writing, the Ripple/US Dollar pair is trading at $0.46639 on Bitfinex.

Summary of Strategy

Buy: As close to $0.425 as possible.
Targets: $0.62 and $0.90.
Stop: $0.405

 

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.