Greetings Traders,
We all know cryptocurrency is the future. We saw a few cryptocurrencies rise recently, such as Bitcoin; Litecoin, Tron, and a few other cryptos. They are taking over, and you should take advantage of it.
…Could this be the next bull? If so, could this be one of the next best investment? With the last article we posted, we mentioned the fall of dollar index. Could that support this move?
About a year and a half to 2 years ago, we saw the major spikes with cryptocurrencies and drop drastically right after. You would almost think it was a pump and dump action. It was very much so. However, these are times that large companies and retail investors would place investments and get ready for a long term push again. I mean, we’ve all heard all the theories and rumors of XRP going towards $10 per coin… $50 per coin… Even $100 per coin? Are those rumors true? If so, would you invest?
…What if the spike we saw was just the beginning? Could you imagine the second spike up, or even the third?
You might be asking, “why are we focused on XRP and not BTC?”
Simple, I’m just sharing you my analysis with XRP since it is one of the few crypto currencies i’m actually invested in.
You can also buy a 1 coin of XRP for a lot cheaper that buying 1 coin of BTC. Meaning you can purchase a lot more of XRP than just getting 1 coin of BTC. That doesn’t mean you shouldn’t invest in BTC. I personally think there are a few good cryptocurrencies to invest along with XRP. You can also invest in other cryptos that are cheaper than XRP.
Anyways, let’s get technical and dive in this market!
On March 26, 2019 we saw the last wick down towards 0.30000 and pushed towards 0.38350, creating a Bullish Engulfing Candle on Weekly timeframe.
This is a good confirmation of a bull run! Now we may see the next candle push down as a retest, but that shouldn’t scare you. I actually want it to go down a little but so i can place better buy entries.
*You can trade XRP on your Metatrader 4, depending on your broker, or buy XRP on any cryptocurrency exchanges.
Should this market push down and retest, i’m expecting it to bounce off around 0.33000 and possibly wicking as low as .31000. It’s a huge demand zone but I would place my buy entries around that price and HODL. If you missed out on the last spike up, that is okay. This may be your opportunity to hop on this bull run.
Before we go down to the lower timeframe, notice that I have a huge trendline marked up on the Weekly and Daily Timeframe. That is the trend I’m currently watching.
Majority of the time, when I see a trend breaking, they push back to the trend for a retest and then continue its movement.
In this case, XRP/USD broke a huge downtrend on the larger timeframe. Therefore, causing a huge spike up then went down for a retest, you can see this on the 4-Hour Timeframe. I also placed another downtrend to show this market breaking a trend, which gives us a possibility of another spike up. Isn’t that what we’re looking for? Now it may not exactly retest on the trend sometimes but maybe on a demand zone instead (Blue zone). You can see that this market touched my demand zone 3 times, indicating a strong price and won’t break that zone. If it does, it’s not going that far down. We do expect a retest down with this market, so let’s take a closer look.
As an investor, you don’t want to just blindly invest. Same goes with trading. You want to analyze the chart, know where your money is going and look at multiple analysis before executing trades.
This market may go multiple ways. I placed a fibonnacci retracement tool from 0.33000 to that spike up, 0.38364. You can see that my 61.8% got wicked. Usually when that happens, I see my -27.0% getting hit, but may possible push down after to finish what it looks it a rising wedge pattern.
Here’s another outlook…
I’ve placed a key level / resistance zone, around 0.37000. If that doesn’t break then a push towards around 0.33000 would definitely be valid. If so, this gives us a better position for buys and long term pushing up with both analyses.
To find where this market is going, take a look at the next photo or the first photo above.
These are my TP levels for XRP/USD:
Take Profit 1: 0.45750
Take Profit 2: 0.59100
Take Profit 3: 0.73750
Take Profit 4: 0.88000
Take Profit 5: 1.07850
Take Profit 6: The moon!
I believe that cryptocurrencies are the future of investments. So hopefully, this gave you confidence with holding your coins. Happy Trading!
Gian Gonzaga – Co-founder and Trader of Paramount FX.
Did this article help you? Comment below.