Trade Recommendation: Ripple (XRP)
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
Summary of Strategy
Buy: As close to $0.425 as possible.
Targets: $0.62 and $0.90.
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.