Ripple (XRP/USD) Consolidation Before A Massive Spike of 42% Expected

in #bitcoin6 years ago

Main scenario:

Looking at the wave structure and the prior low structure it is likely that after this consolidation ends a strong spike up should be expected to the 0.649$ which is where first significant resistance is.


Alternative scenario:

The consolidation ends as a breakout from the downside, and we see another lower low.

Trade idea

I would enter long position on the current levels around the 0 Fibonacci which is in the price terms 0.45436$.

Stop loss:
My stop loss would be set up anywhere from below the 0 Fibonacci level up to 0.4264$ which is on the unconfirmed uptrend line and also the level of the ending 5 wave.

Take profit:
I would consider taking some profits at the 0.51$ level maybe the third of my position, but my main target is at 0.647$.

Trade duration:
between one and one and a half week

Warning level:
If the price breaks below the 0,4264$ I would consider my trade invalid as this would only have been a small recovery before the downtrend continuation.

Risk analysis:
If the price reaches my target, from the levels it is currently that would result in a 42,48% profit, and if it falls to the stop loss level at 0.4264$ that would result in a 5,51% loss, which brings this trade to a risk to reward ratio of: 7.7