XRPUSDT 1-hour chart March 26th 9:49 AM Range
In a range market and judged to be in an uptrend
However, since RSI and the major cycle are in Stage 4, it is likely that downside pressure will intensify. Therefore, it is recommended to trade cautiously.
- A standard deviation range and ADX descending (range market) indicate low price movement and no clear direction. In this case, a common strategy is to wait for a breakout or trend to form, or to trade at the range’s upper and lower bounds.
- Being within 1 sigma of the Bollinger Band indicates the price is near the middle line. In this case, the middle line can be used as support or resistance.
- A squeeze at the BB’s 2 sigma indicates decreasing volatility. In this case, to prepare for volatility to re-expand, you can enter in the direction of the breakout.
- The 200-hour EMA is rising and the current price is above it, indicating a mid- to long-term uptrend and that price is following an upward trend. In this case, a trend-following strategy can be adopted.
- RSI: Stage 4: Tendency to stay long and stabilize into a decline means RSI is below 50 and in a downtrend. This suggests selling pressure tends to increase and even rebounds are more likely to be selling-dominated.
- Major cycle: Stage 4: Tendency to stay long and stabilize into a decline means the major cycle indicator is below 50 and in a downtrend. This indicates stronger medium- to long-term selling pressure, with rebounds also likely to be selling-dominated.
Based on the above conditions, I judge as follows.
- In the short term, it is a range market; it is appropriate to wait for a breakout or trend, or to trade between the range’s upper and lower bounds.
- In the medium to long term, it is an uptrend; it is appropriate to adopt a trend-following strategy.
- However, from RSI and major cycle indicators, selling pressure tends to intensify, and rebounds are likely to be selling-dominated.
- Therefore, if you hold a long position aligned with the uptrend, you need to carefully judge stop-loss and take-profit levels.
