Trade Recommendation: Ripple (XRP)

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

XRP crypto chart
As of this writing, the Ripple/US Dollar pair is trading at $0.40607 on Bitfinex.

Summary of Strategy

Buy: As close to $0.38 as possible.
Targets: $0.46 and $0.62.
Stop: $0.36

 

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.