XRPUSD closes below its opening price unable to hold early session gains
Ripple/US Dollar Index (XRPUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
XRPUSD ended Sunday at 0.4461 losing $0.0170 (-3.67%) on high volume. Trading $0.0330 higher after the open, XRP 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XRPUSD as at Nov 22, 2020):
Sunday's trading range has been $0.0897 (19.37%), that's far above the last trading month's daily average range of $0.0258. 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 XRPUSD.
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. The last time a Bearish High-Wave Candle showed up on August 2nd, XRPUSD actually gained 7.82% 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 0.2866.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for XRP/USD. Out of 23 times, XRPUSD closed higher 52.17% 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 69.57% with an average market move of 60.45%.