We'Re gon na be looking at the moving averages, the trend of xrp, to trend lines that I want you all to draw on your charts as well a potential bearish engulfing candle that's forming as we speak right now on the one day chart we need to retest 30 cents we've broken the long term, downtrend and I'm also going to show you some different oscillators on trading view here. So if you guys get some from this leg, subscribe hit, that notification Bell appreciate you all being here with me today and we'll get into this. So, first of all, as resuming into the candle today remember, this is on the 1 day chart and what I have here and what I can show you is. This is a bearish engulfing candle, that's forming right now and what was before, that was a shooting star candle. Then we almost had a hanging man candle there, and then we have a spinning top candle up in here. So there's a lot of indecision taking place at this spot right here and what you can see is where I have one of my alarms now give it to you here. I have one at 27 cents that's, where I want to see if we're gon na be breaking down through that area, because I want to see if what we're gon na do with this 200 day moving average and that 200 day moving average is at 25 and A half cents, so that area needs to be respected because we broke up through it if we can't hold it as support, that's gon na show that we don't have enough strength, because if you can break through at once, but you can't hold that area.
That shows that that most likely it's gon na be a false break to the upside and now the Bears are stepping in and what we would look to if this 200 is broken. If we do come down in this area and we break this I'm gon na look at this trendline that I have in teal and what I have is a Fanning technique take going taking place. Excuse me for my trend lines, so this is a shorter term uptrend that I'm looking at, but we do have our two points of contact here, as you can see almost three in some areas there, but this needs to be respected if we start having candle closes Below that, then I would look down to this area around 24 cents to find support and then ultimately, this 50 moving average needs to be respected and that's a 22 cents. So those are the downside targets if we do start going down and then overall this way uptrend here that needs to be respected, because that is our overall uptrend and we can adjust that as it goes on in time, but that's what we're looking at now in Terms of our trend lines guys, but the thing is here: we're in an uptrend and how I want to talk about trends with you. We'Re in an uptrend we've had pretty good volume coming in here and, as you can see, we broke out from a long term. Downtrend, so this XRP has been in a downtrend or wasn't a downtrend for six months, and if we go here, we're just gon na do a rough trendline and bring it through right to that area and I'll turn it yellow.
Just so you can see we have broken out through that and it was on more volume, so that is significant, that we've broken out through there. So what I would look at next, if we are to retrace, is down to that 200. Then a potential bounce off that to make it up to 30 cents, 31 cents. This area in green, see this green overhead resistance. I'Ll turn it to red for us here and I'll also get this trendline off so that there and right here will turn to red. Ok, so that area we've been up to many times, you can see this little short term uptrend. We hit it twice. We double topped there and then we've really had an aggressive sell off and before over here when it looked like we're gon na start breaking to the upside, making a real, strong impulse wave to the upside Bitcoin dumped. I remember this specifically and we had a massive dump to the downside. Then we started that short term uptrend again. That was just straight manipulation there. It is what it is. You can see a beautiful break to the upside. It was a trend line break. It came on volume a lot of the times, that's gon na work out for you in the crypto space. Anything can happen so when we're charting this we're, just looking at the price action here, guys that's what you have to remember there's a lot of manipulation in this game.
It can look in terms of textbook wise, a perfect set up and all of a sudden, you have a big dump and that's. Why I like to use stop loss, as I try to be as careful as I can in this space and don't play massive positions. That'S one thing you really don't want to do in this space is to go all in on one position. It can really it can really conscious. So you just want to be patient. You want to look for good opportunities and we're in an uptrend. Now you can see we're up above these moving averages. The trend is chained, changing from what we had here from six months, so this should continue. I want to see this continue to the upside, but what I wanted to do today was talk to you about a potential retracement and, like I said it can be anywhere from where we're at now, where I have my alarm at 26, 27 cents, all the way Down to this 50 moving average at 22 cents and things would still, for the most part, be healthy for us, that'd be a very deep retracement, but to make the next move to the upside. It happens in this space and you can even see when this uptrend started. It came off a strong climax dumped to the downside, we've been in a strong downtrend over all six months and then this part here was just wicked. We had a Bear Flag and then we dumped down hard, and that was a climax dump there, and then the trend changed so that's, where basically, all the people were freaking out the newbies.
That would call him the dumb money is what it is they're selling out, because they're, frightened and then big dogs are stepping in at that point and they're accumulating, and you can see where they accumulated right here we move sideways for almost a month, or so they Were accumulating now we're making our move to the upside so that's, where our trends should continue. One guys excuse me one. Second, guy gets sip of water here the trend should continue and that's what I've been looking at. So what I want to do next was look in trading view. As you see this, these are some of the coins and stocks different things that I'm looking at. So what I pay attention to, if you roll down through here, so you can see that we're looking at X, RP and we're, going into the technical analysis on trading view now and what you can see on the one day we have for sell signals. A three neutral at 10 and 15 a buy our oscillator 0 a sell 9 a neutral to buy, and that are moving averages, 3, 1 and 13. So what this is showing? You is it's a buy for x, RP right now, because this is taking into account and analyzing and putting everything together of the trend, the moving averages. Everything is taking place, the RSI, the MACD, and it puts it all into one essentially – and this is just something for me – I don't pay a lot of attention to, but it can help you if you're getting started to at least identify the trend, because you wouldn't Want to buy something when it says extra, sell signal and all the moving averages are pressing down upon it.
That'S, not something you'd want to do and we've been there before. Everyone'S tried to catch the bottom, and then it just keeps going lower and lower and lower and you're stuck with a bag, and it is what it is and that's. The thing why I got out of the hata Ling. Business was because, when I started being able to read these candlesticks and trends and moving averages, because I did a lot of studying on all of it and really trying to learn the best that I can you know you wouldn't want to sit through massive dumps, like This here say I was in a position. We were writing this up, and I saw this very nasty bearish engulfing candle right here on a long day candle and we also closed below that 50 moving average. That would have showed you right there at least start thinking about getting out and what happened. Was we tried to get back up over this 50? Again, we lost it and then we just started getting work to the downside and that's how these little things they can be so important. All these wicks up here when you see a lot of long wicks to the top a lot of time, there's going to be a sell off coming, and this is the stuff that you can learn over time by studying, but it's it's really important for you guys To pay attention to the trend, pay attention to the moving averages and trend lines, that's, one of the main things that I can tell you like.
I said I want to try to help people on this channel the best that I can because I've been a newbie in the space and in the beginning I listened to some of the wrong people. It is what it is: it's my own fault, and I learned a ton from it and I'm glad that it worked out that way, because when you see some go straight up, you need to take your profits as opposed to hotlink through that and essentially seeing the Coin that you were and go down, 90 percent a lot of you all coins got worked over 90 95 percent, some down 98 percent unbelievable. So these trends can can last for a long time, three years four years – and I don't want my my money or my capital tied up for that long. You have to look at your capital like soldiers, you're sending your soldiers out. You don't want to lose any and you want to bring more back obviously there's times. You'Re gon na lose some but there's also times you're gon na bring a lot more back and that's. What you're trying to do? You have to look at your capital as the way to play the game and that's how you win: they're your soldiers essentially and shout out there to anyone who has served in our military guys. Thank you very much very near and dear to my heart. So thank you guys and put it down low if you have, but this is what I wanted to just point out to you know: let's see see if we have a little retracement see if we break down through this alert here, see what we do with this 200 day moving average, in my opinion, we really need to hold it.
We just start dropping back below that again things can get a little bit squirrelly little hairy and we don't want that. We want to see a nice push to the upside here and have this be our consolidation, what we're doing moving sideways a nice fight and then we pop up here to try to test 31 cents 30 cents, something along those lines. And if we get a pop up above that, then we can really run hard, because if we get up above 31, we dropped hard over here from 41 cents, all the way down to 27 cents. And whenever you drop hard fast on one side. A lot of the times you can make it up on the back side, it's, almost like a gap in the stock market or what would they call a window and Japanese candlestick charting and then, after that, you try to move to the next one up here. In terms of resistance and that'd be around 47 cents, we'll call it 50 cents. We need to break and get over, but we're just at that spot we're at a critical spot right now. I could even take you guys into the one day, but I just don't have the time right now, but if you get in where I'm sorry into the 1 one hour chart we're testing to 200, this white one here on the one hour here, I'll just show You real quick, then I'll jump off here so right here.
This is where we should get a bounce on the one hour, we've been holding it for quite a while. So we need a nice little bounce out of here with some big volume is what XRP needs and we needed about right now, so guys. Let me know down low what you think.