Ripple (XRP) Trading Analysis 1/12/18 - Ready to BUY! Price Rallys off 2 Week Low!

Price testing $2.50 Structural Support

Late last week, we saw the candles begin testing the $2.50 flip zone that has been a structural supply and demand zone on 2 separate occasions. As price began to consolidate and the crypto market started to see a bearish trend as a whole, it was unclear whether or not we would see a rally back towards the $3 range or a continued drop. Quite a few traders did not take any positions at this reaction point, as it was deemed very risky due to the state of the market.

As the candles are in the actual demand zone, it is much riskier to take a trade without the candles closing above or below the area. Waiting for confirmation and being patient is an skill any trader must learn.

Figure 1: Price holding at the $2.50 flip zone, tested on 3 separate occasions

Price breaks structure & tests 2 week low

Eventually, price broke the the demand zone and gravitated to the 2 week low at $1.60 creating a short opportunity. Upon hitting the next structure area @ $1.60, price bounced EXACTLY off the demand zone, and is now rallying back toward the $2.50 price point. This is a great example of how to use momentum and the length of a bullish or bearish move to determine possible entries at reaction points. As seen below, price tested the demand zone twice and failed to even attempt to pass the support structure.

Figure 2: Price bouncing off 2 week low demand zone at $1.60

Overall, many investors flocked at the 2 week low to buy up additional Ripple as it presented an incredible opportunity at a very strong reaction point. The candles were due for a rally as we have finally seen a smaller correction in the market, exhausting all the short sales from major players and giving price the chance to rally again.

Tip: How to determine what is a Supply or Demand Zone

The video below is a great tutorial on how to draw supply and demand zones to determine potential reaction points.

Source