Ripple, Next Historical Test, These Fractals Providing Clarity.

5 Mei 2020

Hello Traders Investors And Community, welcome to this analysis about the current fractal-situation in XRPUSD, I discovered some important signs in the XRPUSD price-chart, in my investigation I found meaningful fractals built the last year. Currently, we are trading in the third fractal C in this structure and there is potential that we will form it like the other past ones because the first step of the overall fractal is already confirming now! This means we can build a logical trading plan assembling on the opportunities we have received from the information and therefore make a profit out of the current structure.

As you can see in my chart the fractal which built already in XRPUSD consisted of three overall periods to complete the whole structure and fractal.

1.) Touch Of The 200-EMA:
- In this period the XRPUSD price touched and tested the 200-EMA from the downside to the upside and consolidated there a little bit. Normally when we see such a test the price gets back to previous levels before coming up to the EMA-resistance and tests it again. In the fractal, we had the pull-back and also forming a lower low with a touch and test of the lower boundary which you can see in my chart marked with the blue trend-line, the arrow, and the number "2".

2.) Touch Of The Lower Boundary:
- Here we have seen a classical test and confirmation of a trend-line, in this case, it is the lower boundary of the whole price structure formed by the lower lows we have seen in the last months. As you can see the price touched it in the fractals a little bit without even consolidating to move higher and forming the reversal after this touch, it happened exactly two times in a row in the fractals we have seen therefore this lower boundary is a strong support-line for the XRPUSD price-action.

3.) Touch Of The Higher Boundary:
- This is the last and final period in the whole structure after the first and second periods laid the ground for the final stage we can see the fractal completing now. In this period we can watch XRPUSD touching and testing the upper boundary of the whole price structure formed by the higher highs which XRPUSD provided in the last months, after the test we failed all times and made a heavy downturn to the downside probably finishing the overall fractal.

What is important to keep in mind now is that XRPUSD is testing and touching the 200-EMA a third time now this is very important because we can see the third fractal in a row playing out in the possible spectrum. This empirical approach to XRPUSDs price-action can reveal a third time and shouldn't be ignored. A full confirmation of the first period can we take in the schedule when XRPUSD crossed below the 0.1723 level then we can expect that we are highly likely confirming the third period of the fractals again with the touch of the lower boundary of the structure. A short-trade can be opened after we crossed the 0.1723 level down with the target at the lower boundary, it is also possible to enter the short before it but this would be a more aggressive entry and should be decided for own. When we are confirming the third period again this will definitely a highly possible and delicious trade-entry for a long-position to keep on the trading-plan.

Thanks for watching the analysis, have a good day, and support for more market insight!
Keep the market past in mind, it can develop profitably in the present.
In this manner: FAREWELL

Information provided is only educational and should not be used to take action in the markets.