XRPBTC closes below its opening price unable to hold early session gains
Ripple/Bitcoin Index (XRPBTC) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, XRPBTC finished Monday at 0.00001901 losing BTC0.00000042 (-2.16%). Today's close at 0.00001901 marks the lowest recorded closing price since December 11, 2017. Trading BTC0.00000042 higher after the open, XRP/BTC was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Sunday's low at 0.00001923, the market confirmed its breakout through the prior session low after trading up to BTC0.00000022 below it intraday.
Daily Candlestick Chart (XRPBTC as at Oct 26, 2020):
Monday's trading range has been BTC0.00000084 (4.32%), that's above the last trading month's daily average range of BTC0.00000057. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for XRPBTC.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on October 19th, XRPBTC lost -2.30% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Closing Marubozu.
Prices broke below the key technical support level at 0.00001919 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Its common bearish interpretation has been confirmed for XRP/BTC. Out of 112 times, XRPBTC closed lower 58.04% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 66.07% with an average market move of -3.26%.