Trade Recommendation: Ripple (XRP)

Ripple

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

As of this writing, the Ripple/Bitcoin pair is trading at 0.00002678 on Binance.

Summary of Strategy

Buy: Breakout and retest of 0.000027.
Targets: 0.0000334 and 0.00004.
Stop: 0.000026

 

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.