Market dumped to premium support/demand level at the price range of 0.3000-0.3600. This range has a strength to continue the trend upwards. It should be noted that the lower time frame trend on Ripple is bearish whereas on higher timeframe, the market is still bullish. Based on the bias of the higher time frames, we are engaging in the bullish sentiment and looking to go long at the price of 0.350. From here onwards, we do see a 30% potential reward at the resistance level.

The bullish pennant has been formed at the support area where market needs to break towards the upside to cater to the possibility of the breakout buys and being validated by price action. Upon confirmation, the market needs to open and close above the trendline in order to keep moving upwards.

The retracement level at the 75-78.6% is in confluence with the support level, where we are looking to go long. This retracement level also has a time frame confluence of daily and weekly level.

Both the EMA’s are bearish, which just turned a bearish death cross. After the breakout sell of the EMA 50, market was unable to retest the EMA 50 and EMA 200. This unfinished retest needs to be fulfilled by the retest, which to the contrary, means that the market has to move up to retest either of the EMA’s. The retest may also be our profit target for the Ripple.

RSI and CCI, both have crossed the neutralized levels while RSI at 32 and CCI at -200. This indicates that the market is about to move up and will continue till the window of over bought region. Also, the market is in the over sold region where the market has the potential to create the bullish divergence. This divergence will pave way for the bullish move up.

Ripple double bottom

May 27 2022

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