$XRP continues its downtrend

$XRP continues its downtrend
XRP / Dollar BITFINEX:XRPUSD
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Key levels
Short term
Supports—> S1: 0.25 & S2: 0.20
Resistances—> R1: 0.30 & R2: 0.46

Medium term
Supports—> S3: 0.18 & S4: 0.15
Resistances—> R3: 0.55 & R4: 0.60

Potential scenario
At the end of September, XRP touched its lowest level since the 2017 bull run, $0.21. Even though it looked like the everlasting downtrend was coming to its end when last June Ripple sore to $0.51, it keeps making lower lows.

After reaching S2 last week, the price has made a retracement to S1 to, very likely, keep going down. It is still too soon to take medium-term positions since the scenario remains very bearish .

TA comment
As argued in the last section, the scenario for Ripple and most of the crypto market still remains bearish . Resistances cannot be broken upwards due to the lack of demand and the price keeps making new lows.

Ripple has been making new lows through strong bearish moves, then making a pull-back and continue its way down. We could use the Bollinger bands to open long positions before the price makes the pull-back. When XRP moves downwards, the lower Bollinger band will be broken by the price, to thereafter increase and perform the pull-back to the resistance. Then, increasing your chances of getting a positive position.

Pattern
During this long downtrend, the pattern In-Neck has been spotted several times. It is a bearish continuation pattern represented by 2 candles. During a downtrend, a long decreasing candle is followed by a small increasing candle that opens below the previous candle and closes slightly above the previous close. Therefore, signaling a sell.


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