XRP's Fair Price Value Area

16 сент. 2019 г.

We could see clearly how price rotates in these parallel lines, practically joined together, becoming as support and resistance. We may perceive these as a boring trend, but excitingly, these would be the perfect opportunity for us to execute a position when the underlying response creates an imbalance to the supply and demand dynamics of the market. These areas will be normally called as Price Value Area, where buyers and sellers would normally see it as an area in which is favorable to them, buying at the boundary low and selling at the boundary high. As a result, price circulates around that area, until traders' evaluations are no longer favorable, thereby resulting into breakout or breakdown. First parallel lines are well balanced. Price circulates around the Area until price went down to .28800. We could see that after it went down, buyers where trying to push price again, but total volume of sellers dominated the total volume of buyers, pushing the price down. Following the downturn, it pulled the price to .22547, but the buyers managed to push the price to .26350 closing price. This excess price or should we say rejection is a solid support that we should look up with. After that, buyers were able to push the price to the Price Value Area again, but in a downtrend. Third parallel line, price is on sideways again, but this would be the perfect opportunity to open consider the future price action of XRP. If breakout happens execute a buy position and prepare a cut-loss if the price would go back below the boundary high. It may skyrocket to 17.44% price or 23.6% fib retrace if demand be favored the most. If breakdown happens, probably it would be an excess price like what happened at the 2nd parallel lines and circulate again at it or go at the lowest price point which is .22547, possibly bouncing back.