Ripple Labs expressed strong fundamentals over the course of the past week. For starters, the San Francisco company behind the XRP token signed a strategic partnership with the National Commercial Bank, Saudi Arabia’s first national bank. They also forged ties with SBI Holdings, Japan’s financial giant, and British Transfer. Ripple also roped in a top-ten U.S. bank as a member of RippleNet. All the partnerships will use Ripple’s underlying blockchain framework – reportedly.
The XRP/USD today kickstarted with an aim to continue its prevailing bullish sentiment. The pair opened the Asian trading session forming corrective lows towards 0.42362-fiat on a pullback from its intraday high near 0.50295-fiat. The upside sentiment, however, gained momentum as the day matured. By the beginning of the European session, XRP/USD had established lower highs towards 0.48008-fiat. At the time of this writing, the pair is trending sideways in near-term.
The XRP/USD without a doubt in its golden bullish times. The pair is retesting its July highs in hopes to extend the bullish momentum towards 0.52542-fiat and a steady descending trendline to its upside. A breakout scenario could replicate the rally from April this year, in which the price recorded 110 percent gains against the US Dollar. A pullback, in the meantime, should also be a consideration for a potential dump, if sellers begin to exit their longs near the new highs, causing a trend reversal.
Should that happen, the pair could be supported by their 200H, 100H and 50H MAs which are now way under the XRP/USD present position. The RSI and Stochastic indicators are already inside their overbought areas, which could mean an imminent correction.
In whichever position XRP/USD moves, we should be prepared with our intraday strategy to chunk out the maximum profits. Have a look.
XRP/USD is now closer to attempting a breakout/pullback action with respect to the 0% Fibonacci retracement level of the swing from 0.26648-low and 0.48115-high. Our intraday strategy allows us to be prepared for both the expected price actions. That said, in the event of a breakout, such that the pair crosses above 0.48115-fiat, we’ll put a long position towards 0.50284-fiat, our intraday high and temporary upside target. A stop loss somewhere 3-pips below the entry position will define our risk. Note that 1 pip, in this case, represents a 0.00100-fiat move.
Likewise, a pullback from 0.48115-fiat will have us put a short towards a distant 0.43049-fiat purely because we expect an intense sell-off anytime. Nevertheless, a stop loss just 2 pips above the entry position will define our risk just as well. We’ll refrain from entering any long positions on a downtrend. Can’t trust the price action!
Trade safely!
Featured image from Shutterstock. Charts from TradingView.
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