After staying below 30 cent for most of this week, Ripple has rallied back on Friday. Will this run be followed by further rallies? The following insight is based on technical analysis.
February 08, 2019 | AtoZ Markets – Ripple is heading back above 30 cent with a surge on Friday. Last month saw most cryptos dipped after some impressive rallies from their 2018 lows. Among the majors, XRP did not make a new low after the November 2018 bearish onslaught. Some believed the entire crypto market has dragged this digital asset down. The price of Ripple might therefore be undervalued. If the bullish trend should return, Ripple would probably be the biggest gainer as it did during the 2017 boom when it recorded a ridiculously high gain. Ripple has launched diverse programs from technology-based to research-based. It’s University Blockchain Research Initiative has become a huge success in less that a year of operation with 29 universities now registered as partners.
Market volume and volatility has remained stagnant this month. The crypto market just gained an additional $1 billion in market cap after maintaining $113 billion for the past two weeks according to data from CoinMarketCap. Ripple maintains a market cap of around $12 billion this week and volume between $300 million and $450 million. If any big move would happen, there has to be an increase in volatility and trade volume. Bitcoin, over the last couple of weeks, has been showing signs of recovery (form the perspective of technical analysis). With BTC having more than 53% of the market dominance, a bullish sign on the flagship cryptocurrency usually means same for the entire market. A big rally is in the cards for Ripple as buyers continue to resist further sell-off.
Ripple (XRPUSD) Technical Analysis and Important Price Levels
The chart above shows price activities from the 29th of January. From 0.285, price rallied to complete a bullish impulse wave at 0.342. The rally was quickly followed by a deep 3-wave correction with price knocking at 0.29 many times. 0.285 was not tested as price rallied a bit upside today. To the upside, 0.3, 0.32 and 0.34 are the most important intraday resistance level. Price is about to break above 0.3. If that should happen, we might see further rallies above 0.34 in the coming days. How fast that will be, is difficult to tell but a big rally is very possible. A break below 0.285 would most probably see price dig further to test 0.24 low and probably make a new low at 0.2.
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