CRYPTO: XRP: What is the best course of action for traders?

XRP: What is the best course of action for traders?

XRP was playing catch up with some of its peers in the broader market. For the moment, bulls were struggling to gather momentum in order to successfully tackle XRP’s 50-SMA (yellow) and $1.10 price ceiling. A failed breakout attempt could see XRP gain a foothold at some near-term support levels before buyers respond once again. At the time of writing, XRP traded at $1.07, up by 2% over the last 24 hours.

XRP Daily Chart

Source: XRP/USD, TradingView

Although XRP cleared its first hurdle at $1.05 post a symmetrical triangle breakout, the confluence of 50-SMA (yellow) and $1.10 price ceiling were restricting further progression on the chart. In fact, the Visible Range highlighted a lot of sell interest for XRP between up to $1.15. Now considering the fact that XRP’s spot volumes were gradually increasing, bulls were favored to smash past these resistance zones and set up a comeback to $1.30.

However, the nature of its indicators suggested some more lateral movement before the next breakout. Support level of $1.05 along with the 200 and 20 Simple Moving Average lines were expected to quell any near-term bouts of selling pressure. Once bulls do cut through the immediate price ceiling, a sustained effort would be needed to overturn the $1.13-$1.15 resistance barrier.

Reasoning 

XRP’s Relative Strength Index hovered just above the mid-line and displayed a bullish-neutral market. Meanwhile, the ADX clocked in at 15 and highlighted the lack of a strong trend on either side. However, the Squeeze Momentum Indicator was making its way above the equilibrium point. The first green bar followed by white dots would present an early buy signal.

Conclusion 

Buyers and sellers were seemed to be a stalemate in the XRP market. Based on the RSI and ADX readings, XRP was expected to show some more sideways movement before breaking above $1.10. From thereon, bulls would need to take on $1.13-$1.15 on strong volumes in order to initiate the next upswing. Meanwhile, the best course of action for traders would be to go long once XRP registers a daily close above $1.10 and its 50-SMA (yellow) and exit after the price forms a double top at $1.40.

This article was first written on yusmid.com


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