XRPUSDT FALSE BREAKOUT?

Consolidating lower term time-frame price action is evident on XRPUSDT after a strong bearish expansion. The local daily support at $2.32 is key to hold for a bullish expansion out of the current price action pennant.

Points to consider,

Accumulation of Volume Profiles
Value Area High Resistance
Daily S/R Supports - $2.05 and $2.32.
Daily S/R Resistance - $2.70
.618 Fibonacci Resistance
.618 Fibonacci Support

The price action pennant shows clear constricting price action that will eventually breakout with an impulsive move. The constriction can be clearly seen on the accumulation of volume profiles as well. This below is a great visual example of how volume gets accumulated within a tight space before a sporadic move.

These types of breakout moves tend to be traps, especially if high timeframe resistances are near. The Daily S/R Resistance at $2.70 is in technical confluence with the .618 Fibonacci and the Value Area High. A pump into this region with low volume has the probability of being rejected.

A confirmed bearish expansion from resistance will solidify a false break. This is considered highly bearish and will open the possibility of a much deeper pullback into the lower .618 Fibonacci at around $1.85. From a technical point of view, a short is valid at around $2.70; it will only become executable when a short entry model is presented.

Hope this analysis helps.

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