XRP/USDT 4H Timeframe Analysis
2024-12-16
Category: None

XRP/USDT 4H Timeframe Analysis

Trend Analysis:
In the 4H timeframe, the XRP/USDT pair is currently in an uptrend, having reached an all-time high of $2.90. However, a bearish engulfing pattern has formed, followed by the creation of lower lows and lower highs, indicating a shift in market sentiment and the emergence of a ranging market. We have identified minor key resistance at $2.50 and a minor key support zone, with a recent breakout of a trend line at $2.40.

After the breakout, buyers placed buy orders in this key area, suggesting a potential long position. However, our bias is that this is merely an accumulation stage following a large volume order in this area. We anticipate some manipulation from the downside, which may lead the price toward our liquidity zone.

Price Action Expectation:
Our objective is to wait for a significant manipulation move that could liquidate some buyers' stop-loss positions placed within our liquidity zone. After this, we will look for the price to return to the previous resistance level.

Trade Setup:

Trade Type: Buy Stop
Entry Price: 2.5090 (just above the resistance after breakout)
Stop Loss: 2.3740 (positioned below the minor support to protect against adverse movements)
Take Profit: 2.9000 (targeting the next major resistance level)
Fundamental Outlook:

Impact on XRP/USDT:
The upcoming developments regarding the SEC's legal battle with Ripple are crucial for XRP's price action. The SEC faces a pivotal appeal deadline on January 15, and the departure of Chair Gensler raises hopes for Ripple and XRP investors.

Potential Positive Outcome:
If the SEC withdraws its appeal, XRP’s price could target its all-time high of $3.55, significantly boosting bullish sentiment.

Potential Negative Outcome:
Conversely, if the SEC's filing leads to unfavorable outcomes, XRP could slide toward the $1 mark, impacting our bullish outlook.