XRPUSD- Point & Figure

XRPUSD –

It’s been a wild few sessions for the cryptocurrency space as a whole, particularly with Bitcoin creeping back up towards the $20,000 price region. In amongst this surge of activity, today’s Chart of The Day will be looking at one of the major altcoins XRP using the point and figure method.

The crypto XRP has seen a sharp rise up around 200% during the past two weeks from 26 cents to a recent two year high of 90 cents.

One of the main aspects worth noting on the chart above is the sudden change in the overall long-term trend from bearish to bullish. This aspect is significant as many analysts and traders will be waiting to see if a similar bull run to 2017 will emerge.

While the latest rally does indeed share some of the previous bull run characteristics, it seems far too early to make those comparisons at this stage. The re-emergence of a strong bullish trend will undoubtedly attract speculative waves of demand. Still, as we’ve seen repeatedly, it’s worth approaching these fast-moving markets with a degree of caution and level-headedness.

The chart is generating plenty of these waves of demand recently. As the price begins to consolidate around 0.60 levels, we see a bullish flag pattern developing, suggesting further momentum building to help reach upside targets.

We can see the next two targets are relatively easy to spot by looking left, those being 0.93 and $1.18, respectively. However, an interesting thing happens when we apply the vertical count method to locate potential price targets. Counting the ‘X’ column following the recent low of 0.43 cents gives us a rise of 0.25 cents. If we times this number by 3 (with three being the measured reversal amount), we end up with 0.75, and the formula to determine our upside target 0.43 + 0.75 = $1.18

Therefore, it seems the previous resistance of $1.18 could turn out to be a critical level for XRP on multiple fronts. Alternatively, the cryptocurrency looks to be building a solid support base around 0.63, but should this fail; it may be a quick slip back down towards the 0.46 regions.

Note: Click on charts to enlarge.

 

By Adam Taylor CTEe

.@adamt_trading

Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

Disclaimer: The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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