Ripple Forecast Update And Follow Up

Hi Traders! Ripple forecast update and follow up is here. On May 18th I shared this “Ripple Technical Analysis And Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!

My Idea

On the H4 chart after the strong bullish move currently it looks like a consolidation is happening in the form of a triangle pattern. The price which is moving inside this pattern has currently reached the to of it. In my point of view, there are three possible scenarios from here, which are as follows:

Scenario 1

If the price moves higher, breaks and holds above the strong resistance zone around
1.63 – 1.64 area shown in the image below, we may then consider it as a validation for the bullish view. We may then expect the price to continue higher further.

Scenario 2

Alternatively if the price respects the top of this pattern and moves lower, then the next area to look for bullish setups with bullish evidences would be the key support zone shown in the image below.

Scenario 3

Alternatively if the price moves lower and breaks below the triangle pattern then the next area to look for bullish setups with bullish evidences would be the strong support zone that has formed between the area of 0.80 – 0.70 shown in the image below.

So based on these three possible scenarios my view here is bullish and I expect the price to move higher further.

 

Ripple H4(4 Hours) Chart Current Scenario

In Ripple the price action didn’t move as per scenario 1 and 2 but it moved as per scenario 3. The price which was moving lower reached the strong support zone that has formed between the area of 0.80 – 0.70. The price respected this zone and created a false break of it. In addition to this we had a bullish divergence that has formed between the first low that has formed on 19th May 2021 and the second low that has formed on 23rd May 2021 based on the MACD indicator. We may consider these as facts provided by the market supporting the bullish view. The price then bounced higher from this zone and delivered a nice move to the upside.

On the M15 chart the market provided with various facts supporting the bullish view. The price which was moving lower created a false break with bullish divergence between the first low that has formed at 0.68890 and the second low that has formed at 0.65128 based on the MACD indicator. The price then moved higher and broke above the last high at 0.74816 thus forming a bullish convergence. We may consider these as facts provided by the market supporting the bullish view. Then as you can see in the image below how the price moved higher after that.

As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.

Advertisement

Click To Join Our Community Telegram Group