Graphic Analysis
The chart is showing a “Rounded Bottom” pattern on a long-term monthly (1M) view. This pattern usually indicates a long-term uptrend. The price has broken out strongly above the resistance area marked as the “Monthly Supply Zone”.
Target and Prices
1. Short Term Goal:
• $4.50 level (first major resistance).
• $5.35 level (Fibonacci 1.618).
2. Medium Term Target:
• $8.63 level (2.618 Fibonacci level).
3. Long Term Goal:
• Above $10.00 (potential area for larger move).
Support and Resistance Levels
• Support:
• $2.50 (Recent breakout zone, strong support).
• $1.85 (Previous low from which price recovered).
• Resistance:
• $4.50 (first major resistance).
• $8.63 and $10.00 (long-term resistance).
Indicators
1. RSI (Relative Strength Index):
• It may have risen towards the overbought region, indicating that there may be profit taking in the short term.
2. Volume:
• The increase in volume shows that the breakout is strong. However, continuity of volume is important for maintaining these levels.
3. Fibonacci Levels:
• The levels targeted by the price are in strong harmony with the Fibonacci ratios.
Formations and Formation Reversals
• Rounded Bottom (Yuvarlak Dip):
• The completion of this formation supports the long-term upward movement of the price.
• Breakout:
• If the price does not return to the support zone after the breakout, it may be the beginning of a strong trend.
Trend Direction
• In the long term, an upward trend is dominant. After the breakout, the price can be expected to move towards the upper resistance levels.
Strategy and Recommendations
1. Investment Strategy:
• The $2.50 level can be used as support for short-term purchases.
• The $4.50 resistance can be monitored for the medium-term target.
• In the long term, potential regions such as $8.63 and above, which are formation targets, can be targeted.
2. Risk Management:
• If the price drops below the $2.50 support, positions should be re-evaluated.
• Stop-loss levels should be set just below support levels.
3. Take Profit Strategy:
• It may make sense to take some of the profit at the first target and hold the remaining position for the longer term.
4. Indicators to Follow:
• RSI and volume indicators can be used to monitor trend strength.
Conclusion
XRP appears to have entered a long-term uptrend with a strong breakout pattern. Both technical patterns and Fibonacci levels support the price's upside targets. However, one should be careful of profit taking in the short term. In the long term, $8.63 and $10.00 levels can be targeted.