XRP/USDT: Hidden Bullish Divergence Analysis 4H (Aug. 08)

8 Agu 2020

X Force Global Analysis:


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In this post, we analyze XRP's hourly chart, assessing its probable bullish and bearish scenarios for the short term.

Analysis

- To begin with, XRP has been consolidating within a bullish pennant pattern
- Prices have been creating lower highs and higher lows
- While bears have attempted to break the structure, bulls have managed to secure significant trend line support
- There is a hidden bullish divergence in play, with higher lows on the price, and lower lows on the indicator
- The Relative Strength Index (RSI) is at neutral zones, showing potentiality for a breakout
- The Moving Average Convergence Divergence (MACD) has shown increasing bearish histograms, but seems to lack momentum for a golden cross formation
- The Stochastic Oscillator has recently formed a golden cross at neutral levels as well, but is looking to get negated as there is a lack of momentum in the trend.
- The Simple Moving Averages (SMAs) are all aligned in the order of: 20, 50, and 100 SMA
- Prices have tested the lower bollinger band support
- Prices have managed to bounce on the Ichimoku cloud support
- For XRP to retest its new lower high, it must first break and close above the 0.618 Fibonacci resistance, providing confirmation

What We Believe

We believe that XRP's short term technicals demonstrate potentiality for a small breakout, possibly leading to a formation of a new lower high. However, for for further continuation, XRP would have to break and close above the bullish pennant structure.

Let us know what you think in the comment section below


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9 Agu 2020

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While the hidden bullish divergence led to a 2% move, XRP lacked enough strength and momentum to test its resistance and complete a higher high formation.



XRP has broken down from its triangle structure due to stronger bearish pressure.

It is currently trading within a descending trend line channel, looking to test the 0.381 Fibonacci support, where it converges with the Ichimoku Cloud support.

Prices have formed a lower low, and the 20 SMA and 50 SMA have formed a death cross.

The RSI is at neutral levels in a downtrend, forming lower highs and lower lows. The MACD has failed to form a golden cross, and is forming increasing bearish histograms. The Stochastic Oscillator has also formed a death cross within neutral zones.

We believe that the bigger corrective scenario is playing out, as according to our daily analysis, where technicals demonstrate clear signs of having topped off.