Weekly Review: XRP Bulls Return

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June 7, 2019 Welcome to the weekly edition of the CoinDesk Markets newsletter! Every Friday we will review our cryptocurrency price predictions posted during the week via CoinDesk Markets Twitter  or our private room on StockTwits, the CoinDesk Dojo.  "Trades You Missed" will feature our favorite trade ideas or technical analysis insights that accomplished impressive gains, where as "Trades We Missed" will feature those that took a turn for the worse. Wins and losses are both part of the trading game, so we hope you will learn how to replicate our successes and minimize losses!   XRP Breaks Out of Classic Pattern XRP/BTC: Price: 0.00005281 BTC | MCAP: $17.6 billion | Maximum Gain: 3% Why we were intrigued:   XRP was at the top of our watchlist this week, due to both its USD and BTC trading pairs showing promising technical setups in favor of the bulls.  The USD pair had completed a “golden crossover” on June 6 of two major moving averages, the 100- and 200-day MAs. This indicated the price action was beginning to outperform its recent past, which is a sign of underlying strength in a market.  As is highlighted in the post below however, its BTC trading pair was reciprocating this bullish outlook, with a large cup and handle formation seen on several key time frames.  Cup and handle patterns are some of the most sought-after patterns due to the fact they tend to resolve with bullish continuation to the preceding trend.  Much like most chart patterns, there needs to be a point of validation (commonly referred to as a “neckline”) that once surpassed, increases the likelihood of the pattern playing out as it is theoretically designed to.   The neckline here was created by connecting the high on May 16 to the highs on May 30 and June 3 to create a sufficient diagonal trendline. Once price broke past this point of validation on high volume, we knew this setup was legitimate and carried plenty of bullish potential.  Shortly after crossing the neckline, price rose past the first resistance area (blue box) to reach a high of 5537 sats, just 3 percent higher than the buy level mentioned in the post, but we feel XRP still has a lot of potential going forward, potentially towards the measured move of 6050 sats created by adding the size of the cup to the breakout point.  On the other hand, if price falls below the low of the handle at 4900 sats, the setup will be invalidated and XRP will likely continue to lose altitude from there.    The Trade The Result LINK Continues to Show Impressive Resilience LINK/BTC: Price: 0.00014984 BTC | MCAP: $416.1 million | Maximum Loss: Trade not entered Why we were intrigued:   Market structure is a crucial aspect of identifying valid trends in a market. Such structures are created by prices completing a series of lower-highs, higher-lows, higher-highs, and lower-lows, not specifically in that order.  A market structure is considered bullish when lows are followed by new highs, which is initially what had formed on the LINK/BTC chart. However, its price fell below a previous higher-low, violating the market structure and hinting that bears had regained control of the trend.  Sound reasoning in theory, but as can be seen in the original post where we called for more downside, LINK had other plans in mind and quickly reversed to head higher all the way towards 16499 sats.  Interestingly, a reason for the recovery not recognized in the initial post is that LINK’s price fell back to the top of a previous channel, which it broke out from on May 18.  Prices tend to return back to previous breakout points to test buyers hands before moving higher, which seems to be the exact situation seen here.  Looking at LINK from this perspective, it seems price simply made another higher-low on the higher time frames, keeping the larger bullish market structure intact. Now that we have a clear higher-low at 10666 sats and high at 14848 sats, we can expect the trend to continue to new highs if the existing high is surpassed, whereas a downtrend is likely to be initiated if prices fall below the higher-low.    The Trade The Result   We're excited to announce the launch of the CoinDesk Dojo, a premium subscription part of StockTwits' recently announced Premium Rooms product. Ask the analysts—Omkar, Sam and Seb—questions about charts and talk with other traders looking to profit off the volatility of the crypto markets.  Create an account on StockTwits and then subscribe! Subscribe Here   Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. Copyright © 2018 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences or unsubscribe from this list