XRP pattern failure leading to high risk opportunities
2025-02-04
Category: None

BYBIT:XRPUSDT  after 5 confirmations since mid November 2024, faced a pattern failure and crashed out of a bullish pendent.

The cause for this can be speculated upon as can the cause for the dragonfly candle on the daily. Deepseek causing the pattern failure (but why, when Chatgpt did not cause a price rise? (The current bull run was driven by the US presidential election results, not AI)). US tarrif imposition causing the dragonfly and the initial downward pressure (but again, why? This is theoretically counter intuitive - crypto should rise in a trade war as it has no borders. Unless there's just rotation from insititional investors into some other asset. But again what asset and crypto should be one of the assets they rotate into, not out of?)

As there is so much speculation, it's best to look at the charts - this is a situation where technical analysis outshines fundamental - to see if there is a margin trade opportunity for those who have an extreme risk appetite for volatile market trading.

The trade is off today's dragon fly daily candle, a text book bullish candlestick and will be done without waiting for confirmation (i.e. the next daily candle) or any daily filter as the trading opportunity will be gone:
Entry: 2.72
SL: 2.52
TP: 2.92
Ration: 1:1

Note: This is not a great risk:reward ratio, the market is in substantial turmoil and this is a trade without confirmation. The smart move would be not to trade, but wait for a few days (weeks?) for the market to settle, the fundamental drivers behind the current market moves to become more clearer (as well as the tariff imposition and it's effects) and a chart pattern forms. However, those that want to take advantage of a volatile market and can risk 0.25-0.5% of their portfolio for a margin trade can gamble (and this one is a gamble) on the above.