Hi friends hope you are well and welcome to the new update on Ripple coin. In my previous article, we have seen that first the price action completed the Head & Shoulder pattern in the month of March 2020 and after that, the price action again formed another head & shoulder pattern. After the completion of the right shoulder, the price action took a powerful bullish divergence from the neckline and this move was more than 63%.
The SMAs on the daily chart:
Now if we watch a simple moving averages on the daily chart. The price action has broken out the 50 and 100 simple moving averages. After being rejected by the 200 SMA the priceline of XRP is retesting the 100 simple moving average as support. I am expecting that the 50 simple moving average will be moved up and form a bull cross with 100 SMA that can lead the price action to breakout the 200 SMA resistance as well.
Down channel and the bearish signals by moon phases:
On the daily chart the price action is also moving in a down channel. At this time the priceline is at the resistance of this channel. Therefore the Ripple coin is facing two resistance levels at the same time. One is the resistance of this down channel and the other one is a resistance of 200 simple moving average. After placing the moon phase indicator on the channel we can see that the new full moon is appeared at the resistance of the channel. That is indicating that it will be difficult for the priceline to cross up this level. And the new dark moon is appeared below the support that is bit critical indication that the price can move upto the level of the dark moon. However, The price action is also having a strong support of 100 simple moving average on the daily chart. Therefore it would be difficult for the priceline to follow the bearish signals of the moon phases indicator.
Falling wedge pattern:
Now if we switch on the weekly chart then the price action has formed a falling wedge pattern. This is seems to be like a down channel but if you take a closer look on the movement of the price action then in fact this is a falling wedge. And the price action is moving towards the resistance of this pattern.
Big bullish Butterfly formation:
At the end I would like to draw your attention towards a big bullish butterfly pattern that the price action of Ripple coin has formed on the weekly chart in Bitcoin market. At this time priceline is moving in the potential reversal zone of this pattern. As per Fibonacci sequence of bullish Butterfly the buying and sell targets can be as below:
Buy between: 0.00002028 to 0.00001548 btc
Sell between: 0.00002400 to 0.00003300 btc
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Conclusion:
Even though the price action has been rejected by the 200 simple moving average and the resistance of the channel as well. But on the long-term it is moving in the potential reversal zone of a very big bullish harmonic pattern and likely to be geared up. Therefore we can expect that soon this resistance will be broken out.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.