XRPUSD daily chart shows a clear behaviour pattern for months now – XRP is ranging in a horizontal channel, bouncing up and down from $0.29 to $0.36 levels. It is easy to conclude that there is not enough power behind its moves upwards to rocket past the $0.36 resistance but also the $0.29 zone is a strong defense line.
The weekly XRPUSD chart, however, reveals a dreary scenario in the making – there is one giant descending triangle forming and XRP is right on the edge of it, about to move up or down. And the vertex of that triangle is reached, so it is a do or die for XRP, again.
The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns.
Considering that market is completely focused on bitcoin’s fight with the newly reached heights, altcoins are rotting on the racks and waiting for their season to commence. While that wait goes on, XRP and other altcoins slowly lose value to BTC and go back to their all time lows. Entering XRP right now would be too risky and you should at least wait for this descending triangle to play out before deciding on your entry point.
Our approach in situations similar to this one, would be a tiered entry position, where you buy a chunk at these prices and set other buy bids right above the significant support lines.
This XRP levitation around this area is going on for weeks now and holding a long position on XRP is very risky endeavor. Shorting it would be less risky but the probably the best option would be to be out of XRP altogether until we some indication where it goes next.
worse, as XRP is about to give away all the gains it made against bitcoin in the last year or so. The price keeps stumbling towards the support zone at 4200 satoshis, price XRP had last time in S...