Trade Recommendation: Ripple
The Ripple/Bitcoin (XRP/BTC) pair launched its bull run on December 21, 2017 when the market took out resistance at 0.00006. Its momentum was so powerful that it went as high as 0.00022888 on January 4, 2018. That’s an astronomical 281.47% growth in just two weeks. At this point, however, the market was in extreme overbought territory. Breakout players exploited the opportunity to take profits.
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As selling pressure mounted, the market buckled and went as low as 0.00008150 on January 16. With a lower high in place, the pair bounced and reached 0.00014710 on January 19. Bottom pickers took advantage of the surge as they dumped positions. Since then, the market has been dropping while the range is narrowing until a spike in price and volume brought it back to life.
Technical analysis show that the XRP/BTC pair broke out of a bullish continuation pattern when it went as high as 0.00013672 on February 10. The move was supported by heavy volume. However, volume has steadily declined since while the market consolidates. This indicates that consolidation is almost over.
The strategy is to buy as close to 0.00011 as possible. After breakout players take profits, the market will likely climb to our target of 0.0002. The process might take about a month.
Daily Chart of Ripple/Bitcoin on Poloniex
As of this writing, the Ripple/Bitcoin pair is trading at 0.00011206 on Poloniex.
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Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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