Hello, dear members of LeoFinance!
Today I am going to comment on the price chart of XRP since it seems that a trend reversal is taking place and an uptrend is about to start.
In the daily time frame (1D), XRP/USD has formed an Inverted Head and Shoulders pattern:
As we can see in the chart, a breakout took place recently (the price chart went through the Neckline) and it seems that this is the beginning of the trend reversal, since Inverted (inverse) Head And Shoulders:
... is a classic trend reversal pattern, according to Technical Analysis theory.
This is what Investopedia says about it:
KEY TAKEAWAYS
An inverse head and shoulders is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends.
An inverse head and shoulders pattern, upon completion, signals a bull market
Investors typically enter into a long position when the price rises above the resistance of the neckline.
In addition, I would like to highlight that if you check the price chart of XRP/USD you can notice that the Right Shoulder is a bit higher than the Left Shoulder. Based on my 14+ years of experience in the financial market, this is just an additional signal confirming the robust bullish sentiment, because it signals that the bulls were strong enough not to let the bears sink the price to the level of the first shoulder. In order words, it means that in the initial phase (Left Shoulder) of the Inverted Head and Shoulders pattern the bulls were weaker than in the final stage (Right Shoulder).
In my view, in case of a retest of the Neckline and a subsequent rebound, it will be appropriate to open a long position.
Fellows, it seems that many of the major cryptocurrencies are resuming the uptrend, based on very common/classic trend reversal chart patterns. Just check my recent post about Ethereum, or Litecoin.
To be continued ...
p.s. at the time of writing one XRP costs $0.4511, on the crypto exchange Bitstamp, according to TradingView.
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 14+ years, and as a cryptocurrency analyst for the last 3+ years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency/commodity trades, investments and etc.
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