XRP 1H Counter-Trend Setup: Quick Long Play in a Cautious Market
Price is consolidating with a bearish bias, but the 1-hour chart shows a potential for a tactical bounce. Here’s the setup:
Key Context (Be Cautious):
· Mixed Flows: Significant 24H outflows in both contracts (-81.91M USDT) and spot (-29.97M), indicating overall selling pressure.
· Low Volatility: Recent 1H candles show very low volume (e.g., 181K vs. average 5-10M), suggesting a lack of strong directional commitment for now.
The Counter-Trend Opportunity:
· Oversold Signals: Indicators like BOLL %B and KDJ hint at a short-term oversold condition.
· MACD Convergence: Bullish divergence forming on the 1H.
· Key Support: The 2.042 level is holding for now, potentially fueling a bounce toward the middle Bollinger Band (~2.0581).
Trade Plan (STRICTLY 1H Timeframe):
· Entry Zone:
1. Aggressive: Near current levels: 2.048 - 2.052
2. Conservative: Wait for a confirmed break above 2.0607 with rising volume.
· Stop Loss: 2.0335 (below the immediate support).
· Take Profit Targets:
· TP1: 2.0712 (First Resistance)
· TP2: 2.0794 (Next Resistance Zone)
Risk Warning:
· This is a counter-trend bounce play, not a trend reversal. The higher timeframe flow data remains bearish.
· Key Failure Level: A clear break and close below 2.042 invalidates the bounce thesis and could trigger a move toward 2.0338.
· Trade small, manage risk tightly, and treat this as a short-term tactical move.
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Note: This is not financial advice. Always do your own research.
