Ripple has started the new year on a good note after a bearish 2019. The cryptocurrency traded at 22.5 cents on Monday. The following Ripple price analysis looks at what could happen next.
January 07, 2020 | AtoZ Markets – The cryptocurrency market has gained over $15 billion in the last 4 weeks and about 50% of that came in the last 48 hours. Ripple surged significantly from 18.5 cents to hit 22.5 cents thus gained over 20% between January 3 and 6. However, the follow-up on Tuesday has been disappointing as the price slumps back to 21 cents. At the time of writing, XRP price has a value of 21.01 cents. The third-largest cryptocurrency bottomed at 17.5 cents in December to hit its lowest price in two years. Overall, the current rally is still minute if we consider the enormity of the bearish trend. It remains to be seen whether Ripple price will continue upside in the coming days and weeks. Meanwhile, a lot will depend on Bitcoin performance.
Bitcoin performance has been on the upside this year. It touched $8,000 for the first time in many weeks after clearing important resistance levels above $7,500. Based on our last Bitcoin technical analysis, BTC will most likely continue to $8,500 where it will meet a tougher barrier. If this happens, Ripple price should, therefore, retest the 22.5 cents to 23.5 cents on the short term. If a massive bullish breakout follows, 30 cents can be achieved in the first quarter. On the other hand, if the price does not recover from Tuesday’s 6.5% slump, the market could resume the bearish trend to a new low.
BitBox withdraws support for Ripple
The current Ripple price dip could be as a result of the report that BitBox will be removing some crypto pairs involving XRP. In a statement published on January 5, the cryptocurrency exchange firm announced that starting from January 16, it will delist XRP and specifically XRP/BTC, XRP/ETH and XRP/USDT. This means that, according to the official post, “delisted coin and pairs will no longer be available for deposits and trades, and all unfilled orders affected by the delisting will be cancelled automatically”. The exchange’s action has raised concerns from some angle. However, one may suggest that the exchange probably does not believe in the prospect of the token anymore. The statement ended with ”we will continue watching listed coins, and provide you with access to the best currencies from the growing blockchain economy”. That looks like a big blow on Ripple as a firm.
Ripple price analysis: a technical overview.
Technically, the trend remains bearish notwithstanding the current surge. The bearish trend is just too overwhelming. In the previous updates, we consider 12-13 cents as the next bearish target before any serious resurgence could happen. In the last update, we used the chart below.
The dip from 31.5 cents was emerging into a bearish impulse wave below a falling trendline.
With the break above the trendline, as the chart above shows, wave iv will be bigger than we expected. However, it should stay below the roof of the thin grey channel line. A breach above means Ripple price will hit 24.5 cents or 26.2 cents Fibonacci retracement levels. However, unless a massive surge above 31.5 cents happens, XRP price should drop lower to 12-13 cents level after the current bounce.