XRPUSD dominated by bulls lifting the market higher throughout the day
Ripple/US Dollar Index (XRPUSD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, XRPUSD ended the month 48.34% higher at 0.2599 after surging $0.0154 (6.3%) today. This is the biggest single-day gain in over three weeks. Today's close at 0.2599 marks the highest recorded closing price since February 24th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 0.2497, the cryptocurrency confirmed its breakout through the previous session high after trading up to $0.0110 above it intraday.
Daily Candlestick Chart (XRPUSD as at Jul 31, 2020):
Friday's trading range has been $0.0186 (7.61%), that's far above the last trading month's daily average range of $0.0105. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for XRPUSD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 0.2502 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, XRPUSD gained 5.50% on the following trading day.
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 0.2114.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for XRP/USD. Out of 2 times, XRPUSD closed higher 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 100.00% with an average market move of 5.33%.
With six out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 3.45% and BCHUSD closing 3.09% higher. None of the markets ended the day in the red. Looking at the Minor Cryptocurrencies, the winners of the day have been ETHCNY surging 8.84% and LTCCNY closing 7.87% higher. The worst performers of the day have been SCBTC tanking -10.34% and PIVXBTC closing -5.56% lower. Read more