Trade Recommendation: Ripple (XRP)
To say that Ripple (XRP/BTC) is having a bad year would be an understatement. The cryptocurrency is down by over 70% year-to-date. If you’re a trend follower, this a coin that you’d want to avoid.
However, recent price action shows that the crypto token is carving a local bottom. If our read is correct, this opens an opportunity to play the bounce.
Technical analysis shows that XRP/BTC is painting an ascending triangle on the four-hour chart. While the pattern is not extraordinary, the price level where the bulls are trying to make their presence felt is worth keeping an eye on.
0.000027 is a key price level for the coin. Back in November 2017, Ripple breached this support and dumped to all-time lows of 0.00000002 on Binance. At that point, bulls quickly bought the dip. They then reclaimed 0.000027 in December 2017. The recovery of the support sparked a monster bull run.
Of course, we do not expect a bull run to happen overnight. What we can realistically forecast is a bounce to our price targets.
The strategy is to buy on the breakout and retest of 0.000027 as support. If bulls can reclaim this level, we can see Ripple tapping resistance of 0.0000334. Take that out and 0.00004 is next.
The process may take less than a month.
Four-Hour Chart of Ripple/Bitcoin on Binance
Summary of Strategy
Buy: Breakout and retest of 0.000027.
Targets: 0.0000334 and 0.00004.
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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