Trade Recommendation: Ripple / USD

PRICE ANALYSIS RIPPLE NEWS

The Ripple/US Dollar (XRP/USD) pair launched its bull run on December 12, 2017 when it breached resistance of $0.38. The price action attracted momentum traders and trend followers who helped push the price to as high as $3.30 on January 4, 2018. In less than a month, the market exploded by over 685%! Participants who bought while the pair was creating a solid base at $0.20 and those who followed the trend started to heavily dump their positions.

As the market succumbed to intense selling pressure, XRP/USD crashed to $0.85 on January 16. Bottom pickers bought the dip, but bulls were tapped out as the market generated a lower high of $1.719 on January 18. From that point, the pair continued to drop in value. It has yet to find the bottom, but the charts are telling us that it will soon.

Technical analysis show that Ripple/US Dollar has broken below $0.68 support on March 21, 2018. Below this, the next firm support is the breakout point of $0.38, and it appears that the market is headed to that level. Currently, XRP/USD is in oversold territory, but volume has been below average. This suggests that the next rally is likely to be a dead cat bounce, and the market would most likely resume its drop to our target.

The strategy is to buy as close to $0.38 support as possible. If bulls preserve this support, they may use it to move to our target of $0.68. Sell immediately at that level because the pair would most likely range trade to repair the technical damage from the crash. The process can take a month.

Daily Chart of Ripple/US Dollar on Bitfinex

As of this writing, the Ripple/US Dollar pair is trading at $0.48427 on Bitfinex.

Summary of Strategy

Buy: As close to $0.38 as possible

Target: $0.68

Stop: $0.33

 

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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