XRPUSD Crypto Update!

*An update on my analysis of the XRP crypto currency*

Apologies for the lack of blog posts this week, I have been busy doing other things outside of trading and it was a long bank holiday weekend in the UK. Let’s get back to it with an update on a previous article I posted analysing the XRP vs USD crypto currency pair.

I actually took a little bit of criticism online when I posted the analysis for this short trade because the “crypto believers” were straight on to me with their views that all cryptos and coins are only going up. I did state in my previous blog post that I do think there is a need and use for crypto currencies but the new bull run is not ready to go just yet.

You can track this trade live on the TradingView platform via clicking the link below. As always, I do highly recommend TradingView for anyone who is looking for a charting software.

https://uk.tradingview.com/chart/XRPUSD/notsJng7-XRP-USD-Short-Trade-GO-AGAINST-THE-SHEEP-FIBONACCI-NOT-DONE/

Post Trade Analysis Chart – XRPUSD

XRPUSD 4 hour timeframe chart
(pre trade analysis)

As you can see in the chart above, price was making nice lower highs and lower lows on the 4hr chart showing a near term downtrend. The set up was based on patiently waiting for the price of XRP to climb back up to the bearish TL before shorting at the resistance zone marked in blue.

The key word in the paragraph above is patience. There was no need to enter this trade at all before price reached the resistance zone because the 1hr timeframe was showing a little bullish momentum. If you entered short at the time the chart above was posted then you would have needed a large stop loss to survive or you would have been stopped out already.

Let’s look at how price reacted to my resistance zone where I wanted to short XRPUSD.

XRPUSD 4 hour timeframe chart
(as at today)
XRPUSD 4 hour timeframe chart
(Resistance Zone)

As you can see on the chart above, there was a lot of reactions to the price resistance zone at 0.32500. Multiple wick rejections showed me that a lot of sellers were also interested in shorting here so the market appeared to be on side. The lower high was created at the region my original trendline predicted and the 0.618 Fibonacci retracement level held strong.

Another important note to take from this analysis is the need for a fairly conservative stop loss. You need to find the perfect balance between reward:risk ratio and not trading too aggressively. If your stop loss is too aggressive then the price reactions at your market turning points (the wicks) will often stop you out before the move continues.


https://tradingview.go2cloud.org/SH3bP

This was just a quick update blog post and I will now begin to provide a lot more content again.

Please remember to LIKE and FOLLOW this blog to stay up to date with the latest posts.

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