XRPBTC closes below its opening price unable to hold early session gains
Ripple/Bitcoin Index (XRPBTC) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
XRPBTC ended Sunday at 0.00002421 losing BTC0.00000057 (-2.3%) on high volume. Trading BTC0.00000168 higher after the open, the cryptocurrency was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XRPBTC as at Nov 22, 2020):
Sunday's trading range has been BTC0.00000415 (16.75%), that's far above the last trading month's daily average range of BTC0.00000137. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for XRPBTC.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After trading down to 0.00002231 earlier during the day, Ripple bounced off the key technical support level at 0.00002256 (S2). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 28th, XRPBTC gained 3.69% on the following trading day. Unable to break through the key technical resistance level at 0.00002523 (R1), the market closed below it after spiking up to 0.00002646 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 0.00001744.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for XRP/BTC. Out of 13 times, XRPBTC closed lower 69.23% 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 four trading days, showing a win rate of 69.23% with an average market move of -2.54%.