Trade Recommendation: Ripple (XRP)
Ripple has been in a downtrend for all of 2019. The number three cryptocurrency has lost almost 67% of its value year-to-date. However, bulls have the chance to step up and finally make their presence felt. It’s either they build a solid support at 0.00003 now or its another 33% tumble for the cryptocurrency before the next support at 0.00002.
Technical analysis shows that XRP/BTC is showing signs of trend reversal. We have this view for several reasons.
First, the daily chart shows that bears successfully breached support of 0.00003 on July 11th. However, bulls responded and brought the market above the support on July 16th.
This is an encouraging signal as 0.00003 is a critical level for Ripple. Back in December 2017, the altcoin breached this resistance and converted it into support. After doing that, Ripple skyrocketed to an all-time high of 0.00022968 in January 2018. Thus, the quick recovery of the support tells us that the market may bottom out at this level.
This bias is strongly affirmed by the daily RSI. The technical indicator is flashing the longest bullish divergence of Ripple’s history on Binance. Even though the price continues to depreciate, the bullish divergence suggests that bulls are gaining significant momentum. Also, both the weekly and daily RSIs are flailing oversold readings. At the very least, we can expect a bounce under such conditions.
The strategy is to buy as close to 0.00003 support as possible. If XRP/BTC manages to stay above this support, the market will likely generate the momentum to rally to our initial target of 0.000038. Take that out and 0.000046 is next.
The process may take less than a month.
Daily Chart of Ripple/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.00003 as possible.
Target: 0.000036 and 0.000046.
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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