- A potential bullish signal for XRP could emerge if Bitcoin surpasses a key moving average, reminiscent of its 2021 performance.
- The analyst’s identification of a bullish divergence on the four-hour XRP chart prompted a cautious entry into a small long position.
- Bitcoin’s price movement above $1.97 is seen as pivotal for XRP, potentially signaling a path toward a new all-time high.
According to a crypto analysis, if Bitcoin breaks above a crucial moving average, mirroring its 2021 performance, it might indicate the right time to aggressively accumulate XRP.
In a recent video, the crypto expert identifies a bullish divergence on the four-hour chart, prompting him to enter a small long position on XRP. While this setup does not guarantee a market bottom, it offers traders an opportunity to profit from short-term price movements.
He emphasizes the need for additional confirmation to validate a major trend reversal. Key factors include a bullish divergence on the daily chart and a clear five-wave pattern in the price action. Without these confirmations, the analyst remains cautious about declaring the end of the current correction.
For those looking at the short-term trading opportunity, the strategist outlines a detailed trade setup. He advises placing a stop loss at $0.478, representing a minimal risk of around 2.19%. The target for this trade is set at $0.5166, offering a potential gain of approximately 7%. This strategy aims to capture a possible A-B-C corrective wave before a final downward movement.
Furthermore, the crypto analyst discusses the broader influence of Bitcoin’s price action on XRP’s trajectory. He notes that a breakout above the $1.97 high could signal a potential new all-time high for XRP. Examining the larger price structure, he identifies a five-wave move up followed by a zigzag-like corrective pattern, which may form a flag pattern akin to a previous correction phase. If this pattern holds, he anticipates significant expansion once the correction is complete.
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