After peaking at 2.9160 in early December, XRP has shown a significant pullback, currently trading within the range of 2.1000-2.3000. The current price is 2.1605, below the short-term moving average (7-day MA) and the medium-term moving average (30-day MA), while being far from the long-term moving average (100-day MA), indicating significant downward pressure. However, there is support at the current level, and a rebound is expected in the short term.
Support level:
First support level: 2.1000 (lower edge of the recent range)
Second support level: 2.0500 (important low point in mid-December)
Resistance level:
First resistance level: 2.2000 (pressure level near the 7-day moving average)
Second resistance level: 2.3000 (strong resistance at the 30-day moving average and the upper edge of the range)
Volume observation: Trading volume has recently shrunk significantly, and market activity has decreased. Direction selection needs to be accompanied by trading volume.
Review of yesterday's trend: XRP fluctuated in the range of 2.1200-2.1700 yesterday, failing to effectively break through key resistance, and short-term bullish confidence remains insufficient. XRP is currently approaching the lower edge of the fluctuation range support (2.1000), and short-term selling pressure is gradually weakening. If it stabilizes in this area, bulls may attempt to push the price upwards to test the resistance level. Overall, a bullish fluctuation operation seems more appropriate.
Trading strategy
Forecast direction: Bullish (low-level fluctuation, high possibility of short-term rebound)
Open position: Buy low in the range of 2.1100-2.1400
First take profit level: 2.2000 (short-term pressure level at the 7-day moving average)
Second take profit level: 2.3000 (pressure at the 30-day moving average and the upper edge of the range)
Stop loss level: 2.0500 (exit if key support is breached)
RSI indicator: RSI is around 40, entering the oversold area, indicating that rebound demand is gradually increasing.
MACD indicator: DIF and DEA are glued below the zero axis. If a golden cross forms, it may bring about a short-term rebound.
Bollinger Bands: The current price is close to the lower Bollinger Band. If it can return above the middle band (around 2.2000), the short-term rebound potential will further open up.
Dynamic adjustment: If the price quickly breaks through 2.2000, consider raising the stop loss to 2.1600 to protect profits.
Please adjust your strategy based on real-time market conditions and pay attention to how market news affects prices. Proper position management and strict stop-loss are key to successful trading. Every fluctuation of XRP is brewing a new story. Follow Mr. Qiu to discover the hidden secrets!
