Crypto analyst JD (@jaydee_757) has identified an intriguing XRP buying opportunity amid a bearish divergence, challenging the wisdom of conventional traders.
A bearish divergence is currently evident in XRP’s daily chart, where its price reaches higher highs as critical momentum indicators such as the daily Relative Strength Index (RSI), the daily Stoch RSI, and the daily Moving Average Convergence Divergence (MACD) show lower highs.
This divergence in XRP is striking, as these crucial metrics indicate a consistent pattern of lower highs. XRP’s price continues to make higher highs, adding to the complexity.
Read Also: Ripple CTO and Deaton Respond to Rumors about Ripple’s Plan to Initiate 10 Billion XRP Buyback
What’s intriguing on the chart is XRP’s creation of a rising wedge pattern, which it has been trading within since September 4. JD emphasizes the importance of this wedge, as a breach below or above it could set XRP’s future trajectory.
*Gasp!* 😵😱Is this a fakeout? Can we have that massive green candle to NEGATE Bearish Divergences? 🧐🤔If not, prepare for that next leg down for a better buying opportunity that Majority will not take!🤦🤦♂️ $XRP
(Patreon/Discord – #BTC and #XRP Updates posted today!) pic.twitter.com/pBiamsUP44
— JD 🇵🇭 (@jaydee_757) October 9, 2023
JD’s chart shows that XRP experienced a fakeout at the end of September, briefly slipping beneath the wedge. This move helped chase indecisive traders away and eliminated long positions. However, XRP quickly rebounded, and the chart didn’t confirm a proper wedge breakout.
The Dip to Capitalize on
Now, XRP has formed another daily candle below the rising wedge. JD is cautious about this development, questioning whether it’s another fakeout like the one in September. He suggests that a substantial green candle in this position could potentially nullify the current bearish divergence and keep XRP within the wedge.
However, if the anticipated green candle does not show up, JD said, “Prepare for that next leg down for a better buying opportunity that the Majority will not take!”
Read Also: Ripple CTO David Schwartz on XRP Buyback Proposal: It “looks an awful lot like a scam”
JD anticipates further XRP declines below the wedge. Interestingly, he views these drops as an opportunity to accumulate XRP tokens at a low price. However, he believes most traders will overlook this potential.
JD has the support of some in the community, with one user stating that he called the short-term target beautifully. However, another user dismissed JD’s analysis, saying it was just another post predicting XRP going up or down and not providing concrete information. He called the post “boring.”
JD seems optimistic about an XRP recovery even in the face of further declines. However, if XRP keeps falling, it will provide a perfect opportunity for investors willing to accumulate and hold their tokens.
This dip might be the perfect opportunity to accumulate XRP because an expert has shown that XRP is still on track to move to $6.7 based on a 10-year trendline support.
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