Trade Recommendation: Ripple (XRP)
Our May 15, 2019 trade recommendation for Ripple (XRP/USD) hit its initial target. On May 30th, the cryptocurrency climbed as high as $0.47478. Those who followed the trade recommendation grew their investments by over 30% in two weeks.
The second target of $0.57 still applies but we’re publishing a new trade recommendation for Ripple because it is currently moving in a tradeable range. In other words, those who took profits on May 30th have a chance to buy again at the bottom end of the range and sell higher. Also, it gives others who didn’t buy Ripple a chance to do so now.
Technical analysis shows that Ripple is painting a bull flag on the daily chart. The continuation pattern comes at the heels of the descending triangle breakout. The bull flag is a strong signal that Ripple will resume its uptrend once consolidation is over.
The strategy is to buy on dips as close to $0.38 as possible. This level appears to be the horizontal support of the bull flag. Interestingly, the 50-day moving average (MA), 100-day MA, and the 200-day MA are all crawling close to this price area. They will act as additional supports to keep the price from falling further.
As long as XRP/USD trades above $0.38, the cryptocurrency will likely rally to our targets of $0.46. Take that out and the next target is $0.62.
The process may take less than a month.
Daily Chart of Ripple/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to $0.38 as possible.
Targets: $0.46 and $0.62.
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.