Hello All,
Today, I wanted to talk about the possible accumulation on XRP:BTC. The reason why I am claiming that there is accumulation happening is that once price peaked (approximately 3780 satoshis) from the first bottom (approximately 2360 satoshis), the decline in price action formed a bullish falling channel. In addition, there is a weekly inverted hammer on the second bottom. The only problem with accumulation that occurs in a falling channel is that it can be difficult the gauge the bottom and that it is highly possible that there is a fakeout downward (known as a spring) before price increases.
The weekly hammer has a support of 2530 and if there is any weekly candle that breaks this support and has a weekly candle whose close is lower than this support is sufficient to inform that the inverted hammer is not respected and that there is a high possibility of strong movement downwards. However, if this candle holds as support, then there is a strong opportunity for price action to make significant upward movements.
Price action:
If this is a double bottom, we are most probably going to see that the price will possibily break the two converging trendline which form a falling wedge. If price action cannot break through this trendline, then I do believe that it will have a movement to the trendline and then drop. If price action can break the resistance of the falling wedge, then there is likely to be a retest of the previous resistance and a movement to the peak of the double bottom. In the ideal situation, the strongest form of bottom would be a saucer, or rounded bottom for the second as it breaks the resistance. The reason that this is ideal is that the falling wedge is not near its apex, and needs to show strong support in this region. One of the best patterns to show a lot of accumulation and support is a rounded bottom.
Best of Luck and Stay technical!
Previous Analysis:
Today, I wanted to talk about the possible accumulation on XRP:BTC. The reason why I am claiming that there is accumulation happening is that once price peaked (approximately 3780 satoshis) from the first bottom (approximately 2360 satoshis), the decline in price action formed a bullish falling channel. In addition, there is a weekly inverted hammer on the second bottom. The only problem with accumulation that occurs in a falling channel is that it can be difficult the gauge the bottom and that it is highly possible that there is a fakeout downward (known as a spring) before price increases.
The weekly hammer has a support of 2530 and if there is any weekly candle that breaks this support and has a weekly candle whose close is lower than this support is sufficient to inform that the inverted hammer is not respected and that there is a high possibility of strong movement downwards. However, if this candle holds as support, then there is a strong opportunity for price action to make significant upward movements.
Price action:
If this is a double bottom, we are most probably going to see that the price will possibily break the two converging trendline which form a falling wedge. If price action cannot break through this trendline, then I do believe that it will have a movement to the trendline and then drop. If price action can break the resistance of the falling wedge, then there is likely to be a retest of the previous resistance and a movement to the peak of the double bottom. In the ideal situation, the strongest form of bottom would be a saucer, or rounded bottom for the second as it breaks the resistance. The reason that this is ideal is that the falling wedge is not near its apex, and needs to show strong support in this region. One of the best patterns to show a lot of accumulation and support is a rounded bottom.
Best of Luck and Stay technical!
Previous Analysis:
