Falling wedge w/ a strong down trendline & legal action pending
XRPUSD has found itself victim to 2020, though it may stumbled into a technical upside. Price action is forming a falling wedge but a bullish breakout could be stifled by the strong downtrend line started since the announcement of the SEC lawsuit. If the breakout can punch through this, longs should be opened with a target price of the established resistance at $0.38. Positive legal news with regard to the pending SEC lawsuit for Ripple could result in even higher highs - perhaps reaching back towards $0.50. However, a breakdown of this pattern will end badly for the pairing, and like result in a retest of the local low near $0.2135.
Komentarz:
The trendline has once again rejected the pairing, sending to to retest the local low near $0.21. A break of this support level will definitely result in some major selling down to the June 2020 low near $0.17.
Komentarz:
As suspected, the dump landed on $0.17 perfectly and held. Bulls pumped the price back up nearing the strong down trend line. It appears that another attempt to test the primary down trend line is underway - I suspect it will hold and a dump towards $0.15 will occur.
Komentarz:
Some might want to call this a falling wedge but the high volume invalidates that pattern. This is simply negative fundamentals at work; $0.11 is the last strong hold for XRPUSD
Komentarz:
I remain bearish on this pairing because there is (currently) no positive news expected with regard to the SEC lawsuit - for which a pre-trial hearing is scheduled for 22FEB2021. If positive news comes out, be prepared to go long, with a great risk reward ratio of
However, back to the now. XRPUSD still finds itself under the down trendline (new confluence required a redrawing of the trendline resulting in a rather small shift). Here is my prediction for the next couple of days:
However, back to the now. XRPUSD still finds itself under the down trendline (new confluence required a redrawing of the trendline resulting in a rather small shift). Here is my prediction for the next couple of days:
Komentarz:
Looks like XRP managed to drift on out from underneath the trendline. A falling channel (possibly a wedge) is the primary pattern we are seeing now.