Ripple bounced from the new low at 17.6 cents. How high will it climb before the next decline? The following Ripple price analysis is based on the Elliott wave theory.
December 21, 2019 | AtoZ Markets – The cryptocurrency market has surged in the last three days. Although that has not taken the market away from the current red zone. The sell-off might, therefore, continue after the current minor rallies. December will most probably end bearish to complete the larger sell-off phase from June. Meanwhile, Ripple bounced off 17.6 cents – its lowest price in 25 months. With the current overwhelming bearish run in the market, it looks very much likely that Ripple price will plunge lower to 15 cents and 12-13 cents. The current minor recovery is expected to challenge the 21-21.5 minor resistance zone. If it breaks sufficiently above, we should see the current run advance to 24-25 cents.
The current recoveries have added $6 billion to the market in the last 72 hours. Market capitalization now stands at $190 billion and over $76 billion of 24-hour volume. Ripple has gained 3.6% in the last 24 hours at the time of writing, higher than any other crypto in the top 10 listed on Coinmarketcap. Meanwhile, Bitcoin maintains a market dominance of over 68%. With the expectation of BTC further declining to $5,000-6,000 or maybe lower, Ripple and other Altcoins will be dragged along in the pit.
Ripple price analysis: Elliott wave theory
The Ripple price long-term technical view remains bearish. A 3-weeks triangle pattern completed at 31 cents in the first week of November below a strong resistance zone. The triangle pattern was a consolidation of the 51 cents to 23.5 cents decline between June 22 and August 14. The break below the triangle meant that XRP will drop to 14.8 cents and the 12-13 cents bearish target we have discussed since July. In the last update, we looked at the long-term price action with the chart below (Charting tools from TradingView).
Unless a massive surge happens above 30 cents (and the faint channel level), we should see Ripple hit the bearish target. The current recovery is expected to go sideways to complete perhaps another triangle pattern (of lower degree) as the new chart below shows.
At the end of the large triangle below 32 cents, the decline emerges into an impulse wave. The next target is now 14.79 cents – the 61.8% Fibonacci extension of the $0.51-$0.235 decline from the top of the triangle pattern. There is also a big possibility that the level is breached. On the other hand, if the bearish trend line connecting the wave pattern from 31.5 cents is breached upside, we should see bigger recoveries to 24-25 cents at least.