Early May Update: Technicals
XRPUSD daily chart shows a clear behaviour pattern – 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.
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.
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.
One thing to bear in mind is the turbulent and erratic nature of bitcoin – a sudden thrust up or slide down is always on the cards which would invalidate this and all other analysis and predictions. In such cases, market is shaken up with most traders exiting altcoins and entering bitcoin positions, especially in the initial phases of bitcoin pumps. So it is always good idea to keep a close eye on bitcoin’s behaviour before opening a long or a short on any other coin in the market.
Should this happen, stop by again to check out our updated charts and thoughts.
However, the unraveling Tether saga might keep the whole market in a cramp for undetermined time period so XRP might enter a trendless, sideways…