Ripple’s XRP, once a promising contender in the cryptocurrency space, has recently exhibited bearish signs, raising concerns among investors. Today, we delve into the technical indicators and patterns to assess XRP’s current trajectory and identify potential trading opportunities.
One-Hour Chart: Bearish Structure and Potential Downturn
On the one-hour chart, XRP’s price action deviated from previous expectations of a regular flat correction to 57.85 and 55.7, instead reaching 58.6. This divergence highlights the emergence of a bearish structure, characterized by a strong high and weak low. This bearish structure is further confirmed by Smart Money Concepts.
Adding to the bearish sentiment, the 50 EMA and 50 SMA are trading well below the 200 EMA, indicating a downward trend. Additionally, a break of structure is evident on the charts, suggesting a potential move to the downside.
Elliott Wave Theory and Stochastic Indicators: Pointing to Further Correction
Applying Elliott Wave Theory, we anticipate a move down to 51 cents. This prediction is supported by the overbought conditions observed on the stochastic indicators on the 4-hour and 8-hour timeframes.
Further reinforcing the bearish outlook, XRP encountered resistance at the 200 EMA, preventing a breakout and reinforcing the downward trend. Additionally, money flow indicators on various timeframes are signaling negativity, supporting a potential downside.
Weekly Chart Analysis: A Potential Healthy Correction
Moving to the weekly timeframe, we observe a drop to 58.5, followed by a close above this level. This price action suggests possible support at this level. While the overall trend remains bearish, a healthy correction on the weekly timeframe is anticipated.
Additional Indicators and Black Friday Deals
For those seeking more in-depth analysis, memberships are available to access additional indicators, including Cheeky Indicators, Stochastic RSI, and Trading Cipher.
Additionally, Black Friday deals are on the horizon, so stay tuned for potential discounts on memberships.
Safe Trading Practices and Positive Outlook
As always, it is crucial to prioritize safe trading practices and employ tight stop-losses to mitigate potential risks. While the current outlook for XRP is bearish, the cryptocurrency landscape remains dynamic, and opportunities may arise amidst the correction.
We thank you for joining us on this exploration of Ripple (XRP) and wish you a great week ahead filled with informed trading decisions!