Technical Analysis XRPUSD October 2018

Technical Analysis of XRP/USD October 2018


One Alt-coin causing heads to turn in the crypto space is Ripple, as the XRPUSD pair heads towards breaking out of a critical resistance trend line. This was followed by a recent Bloomberg report on Thursday, the 27th day of September. Prior to this announcement, speculative demand for the pair was rapidly increasing as lower time frames triggered huge bullish sentiments. You can read more about Ripple platforms in BitMEX review and Binance review.

Adopting a multiple time frame approach to technical analysis of the XRPUSD time series chart, we would start by deploying a top-down approach, starting from the monthly chart. This will enable us to get a clearer view into what’s coming up next, as the new month of October 2018 lurks around the corner.

XRPUSD Monthly Chart

Technical Analysis XRPUSD October 2018 monthly chart

From the above monthly chart, price broke out of a bearish accumulation pattern on 1st October 2017 in the form of a long bullish candle two months after the bearish pattern. The month of January 2018 closed bearish with a long candle wick, which was a huge disappointment for those hoping the breakout would continue. The pair continued by triggering another bearish accumulation pattern signalling a reversal of the bullish thrust on February. Above the resistance price of 1.24072033 was where the bears had their stop loss placed.

The pair, in July, did a bearish accumulation, followed by a false break pattern on August, and in the current month trading above September opening price. A bullish price close of the current month will confirm the month of August to be a false bearish breakdown.

Also interesting to note is that price currently sits on the 0.31159030 support level, which was the bearish resistance of the accumulation pattern of October 1, 2017.

XRPUSD Weekly Chart

Technical Analysis XRPUSD weekly chart

The weekly chart of the same pair offers better trading options, as the pair breaks out of two bearish accumulation patterns. One formed on November, and the main one formed on 11 December 2017. The entry signal from this time horizon leads to a long buying trade that lasted for about three weeks part of which crossed into 2018.

Bullish accumulation patterns formed on 19 Feb ’18 and 07 May ’18, both failed to bearish breakdown setups. The failed bullish accumulation zones later became areas where another trend line chart pattern “The Chuvashov’s Fork” was formed. This is one pattern we have on our radar. A bullish price close above the second trend line of the Chuvashov’s fork will signal a high probability bullish trend reversal.

XRPUSD Daily Chart

Technical Analysis XRPUSD Daily Chart

Here we get closer to the meat and potatoes of the market. The haven of short-term speculators, where price sits on a support level established by the breakout of a bearish accumulation price action pattern on the 16th of August. After a price drop on the 3rd of September, price again broke out of another bearish accumulation pattern on the 18th of September consequently leading to the current rise gain in strength for Ripple.

Technical Analysis XRP/USD H4 Chart

Technical Analysis XRPUSD H4 Chart

In more recent times, starting from 12 September to be precise, the XRP began a bullish rally by first breaking out of a bearish accumulation pattern. A breakout of another bearish accumulation pattern was triggered on 18th September, which was immediately followed by a double bullish accumulation pattern as depicted on the above chart. This set the pair up for a bullish rally shooting the pair to its highest high of about 0.77442 since the past 18 weeks.

The U.S dollar later recovered parts of the bullish rally, later to form another bullish accumulation pattern that coincides with a bullish hidden divergence pattern on the 25th of September, establishing support at 0.43786.

Conclusion and Projection

Moving forward into the month of October 2018, Ripple shows high prospects of continuing the bullish rally already established on the lower daily and 4hour timeframes. Only time will tell if the pair will close above the trend line resistance of the Chuvashov’s fork from the weekly analysis. In conclusion the pair is in a bullish trend with high prospects of continuing into the first week of the October 2018. 

Some of our Ripple trading platforms are Binance, BitMEX, eToro and Avatrade.

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