This will be brief. Did you notice how XRP wicked down to the magical 4.236 red fib circle boundary, and immediately bounced back up, completing a green candle? This is evidence that the 4.236 on my chart is still a "hot" line. It sparks action. It appears that the price line is headed back down to touch this fib boundary again. Now that we know it is still transmitting the magical gravitational power, I would expect the action to happen on the line. We could bounce and crawl up the line, or take a straight shot to the next magical boundary.
The big purple 3.618 is right below. We could pop down to that ring if we break the gravitational pull of the red 4.236. There are several possibilities here. The best scenario would be crawling up the 4.236 for several days, which would be a consolidation move. The longer we stick to the 4.236, the higher the possibility of a positive break when we cross that big purple 3.618.
Now let's talk in general terms.
It was truly exciting to see the bump on September 17th. This was the first bit of action to break the boring downtrend. But overall, as you can see from zooming out on the chart, we are still in a bearish trading channel. I'm still looking for the price to flatten out, and form a nice boring baseline that doesn't have much volatility. I'm still sticking with the idea that 0.25 is the base. With BTC doing the opposite of what the moon boy YouTube jockeys have predicted, there's a chance of seeing volume out of it and into XRP.
If we have a few MONTHS of quiet accumulation, and then a small bump that takes us into consolidation, we are going to be on the brink of the next quantum jump for XRP. And it's not going to be $3.25. The next major peak will be in the $10 to $20 range. And mark my words, when that happens, we'll all be wishing we could hit "rewind" and go back to the days of XRP at a quarter a pop.
Not financial or trading advice. Entertainment purposes only.
@carltonzone, I see no sense in using these circles. I don't see any value for analysis. But I'm glad to have it explained if I'm wrong.
carltonzone
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@DalimilBrodsky, Thanks for the comment! I don't think anyone can tell you that you're "wrong" for saying that at all. I didn't see any sense in the fib circles either, until I found my own method. I'm an old technical analysis fan from waaaay back in the days of the penny stocks. In 1999, I made a metric crap ton of money using TA to do short term trades (holding anywhere from 1 week to a few months) on the OTCBB. I noticed that 'some' of the TA works with crypto. But it's a crap-shoot. The one thing I can depend on when it comes to fib circles, is that IF you find a set date range that previous pivot points fall on, or where the price rides the line, the rings out ahead of the price line usually tell a pretty good story. You won't always get it right, but it at LEAST gives you maybe a 50% to 75% chance of making a pivot. For example, on my chart, we see how XRP rode up the 2.618 purple line. We also see how the price touched the red boundary, then came back to touch it again. Then it took the nose dive. I was partially wrong, because I thought it would stay on the line and ride it up. But it pivoted. So right now, my eyes are on that purple 3.618 line. Watch it dip down to that line, and make another decision. It will bounce, or take another nose dive. But anyway, thanks for chiming in!