Market Analysis – XRP on 31May2019
XRP/USD performed its 7 months high on May 16th, making a resistance (R1) at $0.48. Since then, the price hasn’t been able to break this level. Yesterday, it tested R1 but it couldn’t go higher than 0.47. This means that there is a new maximum that is lower than the previous one, which is a bearish sign. Now, the price is being held in S1 and if the demand at that level is strong enough, it will avoid further falls. However, if it is broken we can expect a fall to S2.
XRP Key Levels
Supports—> S1: 0.41 & S2: 0.36
Resistances—> R1: 0.48 & R2: 0.50
Supports—> S3: 0.34 & S4: 0.31
Resistances—> R3: 0.53 & R4: 0.555
XRP TA Comment
After the pump on May 16th the price retraced to S2 and now it is being held in S1. The indicator MACD gave a Buy signal once the price bounced on S1, but as said in Potential scenario, the price is giving certain bearish signs. A way to have more probabilities of success with a long position, is to use Percent Change at 1.75%. So, once the price has gone above 1.75% and broken upwards the small resistance that has formed in a lower candle size chart, a long position will be opened.
After the price tested S1 for the last time, it is possible to spot the pattern Three Advancing White Soldiers, which is a bullish reversal pattern represented by three candles. After a downward trend, every candle has a long body and an upward direction. This pattern would send a buy signal which, if combined with the indicators mentioned in TA comment, will be more solid.
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