XRP/BTC continues trending in a large symmetrical triangle. With the jump in price of BTC during yesterdays Bitmex maintenance where is the crypto pair likely to lead us?
Yesterdays jump in bitcoin price as shorts closed their position was a welcome relief to the bulls. Though as of the time of this writing BTC has fallen back to $6400 levels from it's high near $6900 last night.
Looking at the topic at hand XRP has been trending in a sideways channel between 5300 sats and 5000 sats since August 18th.
With the RSI and CCI hanging in the middle and a lack of volume XRP doesn't present a clear path so we will look at two possible scenarios.
If the market can maintain bullish sentiment XRP could see a move up breaking out of the sideways channel. Though this would not be a trigger for a buy as the pair is looking at stiff resistance in the 5400 sat region. A 4-HR candle close above this resistance level would see us enter with a 50% position and a tight stop of 5100 sats. If the bulls are successful at maintaining above the initial resistance line XRP is likely to push to the next resistance line of 6000 sats where it would likely test and be rejected. Traders entering positions should look to take profits at this mark.
On the downside the XRP/BTC could see a fairly steep fall. A move down out of the sideways channel is most likely to take XRP/BTC to the support line of the symmetrical triangle in the region of 4200 sats. Shorts could look to come in with a break below 5000 sats in the pair.
With no reliable buy setup and a high risk/reward we shall wait for XRP to make a move before considering a trading position.