Ripple is breaking out of its short-term consolidation pattern, and after our short-term buy recommendation yesterday, it is trading near the historic $1 level, being up by almost 400% in two weeks, while the coin gained around 30% just today.
The digital currency that has been correcting for over 6-month after its meteoric rise in May finally broke out, riding the euphoric wave of buying in the segment two weeks ago. At that time, it was the only major on a long-term buy signal in our trend model, that turned to a sell signal on December 15th, after the coin quadrupled in value.
XRP/USDT, 4-Hour Chart Analysis
Since then, a choppy consolidation pattern has been dominating the market, while the short-term overbought readings have been cleared. The 4-hour MACD reached neutral territory yesterday, and gave a short-term buy signal today, confirming the upswing.
Short-Term Gains Still Possible
While the long-term picture is now overbought and investors should be using the current break-out to further lower their exposure, traders could remain long, as the currency might score significant short-term gains.
The exit strategy in the case of trading such moves could be a trailing stop order, while using Fibonacci extensions for possible targets is also an option. The major targets for the current move are ahead at $1, $1.10, $1.25, and $1.50. Support levels below the current price are found near $0.85, $0.68, $0.61, and below that around the prior all-time high at $0.42.
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Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.