I find the weekly chart for #XRP to be interesting as it appears to be following the basic principles of price action and market structure.
1️⃣ First, let's examine the support and resistance levels. I've added red and blue arrows to the chart to make it easier to highlight the swings I considered while drawing these zones.
When drawing support and resistance levels, I look for at least three rejections (swing lows or highs), and as you can see, all of the support and resistance zones connect to three major swings.
2️⃣ Second, let's delve deeper into the market structure. Previously, XRP was bearish, making lower lows and lower highs while trading inside the bearish red channel.
However, after finding support around 0.3, the bears began to show weakness as they failed to create new lower lows, and instead became stuck in a range. For the bulls to take over, we need a weekly candle close above 0.6.
This would break XRP above the resistance in green and the gray range in which it has been trading for almost a year.
Meanwhile, we will be trading the range from a short-term perspective. This means that when XRP approaches the lower bound around 0.3, we will be looking for short-term buy setups, targeting the 0.5-0.6 resistance zone.
📚 Hope you find this post useful. It's important to always adhere to your trading plan, including entry points, risk management strategies, and trade management techniques.
