XRPUSD Medium-term Trend: Ranging
Supply Levels: $0.88, $0.87, $ 0.86
Demand levels: $0.82, $0.83, $0.84
Yesterday, May 2, price of Ripple was fluctuating from the resistance level at $0.90 to the support level at $0.80. The understanding was that if price breaks the resistance level at $0.90, Ripple will revisit the highs of $1.10 and $1.22. On the other hand, if price breaks the support level at $0.80, price will find the lows at $0.77. Price of Ripple is currently trading at $0.84.
However, from the weekly chart, the price of the asset is in a ranging market and no level is broken. Price of Ripple is evenly apart between the resistance level and the support level. We may have a breakout in the days to come but we can trade the ranging market pending the outcome of breakouts. If we had followed the ranging market, since on April 24, 2018, this is how our trading should be.
As the price gets to the resistance level, you take a short trade and exit your trade near the support zone. Similarly, when price gets to the support level, you take a long order and you exit near the resistance zone. Your stop loss for long trade should be below the support level. In the same vein, your stop loss for a short trade should be above the resistance level. This is what you do until price breaks out of those levels.
XRPUSD Short-term Trend: Ranging
The Ripple price is also ranging in the daily chart. Remember that, when there is no breakout trading, the only option is to trade the ranging market. And the only condition for you to trade the ranging market is that the market does not have a choppy price action.
The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
