Ripple (XRP/BTC) has been difficult to trade for the last few months because it has been in an unstoppable downtrend. From a high of 0.00010722 on December 24, 2018, the cryptocurrency plunged to as low as 0.00004024 on May 13, 2019. That’s a plummet of over 62% in about five months. The drop was particularly unsettling because it happened while most altcoins were skyrocketing.
Nevertheless, it appears that Ripple bulls are finally coming to life. They have a solid opportunity to stop the bleeding.
Technical analysis shows that XRP/BTC may be carving a bottom at 0.0000415. We have this view because Ripple respected the support on May 13, 2019. This horizontal support has been in existence since December 2017. From that point, the market has always bounced when touching this level.
In addition, it appears that Ripple is printing a fractal of the price action from July to August 2018. If our read is correct, the market should consolidate for some time around 0.0000415 before bouncing to our initial target.
The strategy is to buy as close to support of 0.0000415 as possible. If bulls protect the support one more time, they will generate a rally to our target of 0.000058.
The process may take a month.
Daily Chart of Ripple/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.0000415 as possible.
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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