The sell off in XRPUSD (Ripple) after it reached a high of ~$3.30 on Jan. 4, 2018 is captured in the chart by the .
The curved light blue line on the chart is used to show the bottoming action in the price of Ripple. This indicates that the price of Ripple will resume a or price swing upwards albeit temporarily.
If Ripple fails to hold at its current price of ~$0.89, it could easily sell off to the region of Support 1 (between $0.67 and $0.79). If this fails to hold then Support 2 could likely be tested i.e. price could sell off to about $0.40 – $0.53.
In order to place a buy order, I would like to see Ripple capture the $1.08 area which I have marked as a great POE (Point of Entry) into a trade. In that case, Target area 1 or Target area 2 would be great as areas to take profit.
Target area 1: $1.70 – $1.76
Target area 2: $2.07 – $2.20
In either case, stop loss can be placed just below $0.87 for the IDEAL entry at $1.08. Using this should provide a risk/reward ratio of at least 3:1 with Target area 1 or 2 used as the point to take profit.