XRP Price Action is impulsive above key structural Daily S/R levels, confirming a b ack test with increasing volume will show strength in the short term. Price Action of now is trading under a key resistance zone the needs to be cleared.
Bullish Order Blocks and Bullish Volatility Expansions
Observing XRPUSDT’s chart above, XRP Price Action initially respected its Bullish Order Block that was in technical confluence with the Daily S/R Support Level. Holding this level was critical to maintain a Bullish Bias, evidently being the case as a strong Bullish Expansion followed suit. This Bullish Volatility Expansion had increasing volume allowing it to break key resistances.
The Dynamic S/R was compressing XRP Price Action into its Apex until it was successfully breached with a confirmed back test. This was the initial sing of an impulse coming to fruition as the overlying Weekly S/R was breached with conviction.
As of current, the Volume Profile has had a strong influx after a succession of Declining Volume.
When the Volume Profile is on a Decline as Price Action reaches its Apex, it increases the probability of a breakout being imminent. Follow through is critical to sustain momentum, especially when a back test of the Daily S/R comes to fruition – failure will be indicative of weakness.
Hope this article helps when making discretionary decisions
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org