Should you buy XRP as charts point to a surge soon?
Ripple (XRP/USD) was trading 1% lower on Friday after it rallied as high as 7% on Thursday, many investors are looking to enter Ripple in hopes of a rally soon which was indicated by the move on Thursday. Ripple has fallen by over 40% from its highs of $1.34 that it hit in November, thus this is looking like an attractive time to buy Ripple.
Ripple has some great fundamentals which can help support the price in the long run, thus this dip could be a great opportunity to buy Ripple. Ripple is up over 5% this week, which is signalling towards a reversal in the price. However, should you buy Ripple now?
Here is what the charts are suggesting-
Ripple has been moving in a side trend since August and has been consolidating since, moreover, a false breakout was also seen earlier this week, as the price fell below $0.83. Thus if Ripple is able to break back in the zone a bullish view can be confirmed.
It is looking like Ripple is forming an inverse head and shoulder pattern, this could be a great bullish pattern and long entries can be taken at the retest of the price at $0.88. Ripple could start moving towards the upper resistance at $1.34 if an inverse head and shoulder is seen.
The RSI is also at the support level and is extremely close to the oversold zone, thus buyers could be seen returning soon which could soon start a rally.
Long entries should only be taken above the zone at $0.88, as a bullish bias can only be confirmed once Ripple is in the zone, thus any long entries should be voided below the zone.
Investors can set a target of $1.2, followed by $1.34. Nevertheless, investors should keep a stop-loss below the support zone of $0.88.