Ripple has been confined in a triangle pattern for 18 weeks. Where is the next breakout direction?
May 01, 2019 | AtoZ Markets - The XRP hit above 32 cents on Tuesday after making a 16% upswing from 28.5 cents support level. For the third time since December 15, 28.5 cents acted as a price support level. It was expected that a break below this price level could lead to a deeper digging below 20 cents.
Since the current bullish recovery started, XRP has been left behind while other top cryptos have had significant gains. Despite the lack of bullish momentum, XRP still remains the third most ranked crypto in terms of market capitalization. At the time of writing, its market cap is close to $13 billion which is almost equal to the combined market cap of BCH, LTC and EOS which are the next three in the ranking.
Ripple technical analysis and important price levels
In the last update, we looked at two possible scenarios after price rebounded from 28.5 cents. The first scenario looked at a bearish impulse wave from 38 cents top to complete XRP's last bearish leg at prices lower than 22 cents. That would come after a bearish pullback to 32-33 cents. The chart below was used.
Price has rallied just as expected to 32 cents. If a fast dip follows, this scenario will continue valid and XRP price will most likely drop below 28.5 cents to 20 cents and below. The alternative scenario forecast an ending diagonal pattern to 26 cents if there was no rally above 31.5 cents. The chart below was used.
The ending diagonal pattern was violated with the current surge above 32 cents. Therefore only the first scenario still holds. Is there any other high probable scenario? Yes.
XRPUSD technical forecast - 18 weeks triangle?
Since 15th December, when many cryptos hit their 2018 lows, prices have resurged into 2019. However, Ripple has gone sideways to now completing an 18-weeks triangle pattern with the neckline at 29 cents.
The current rally could continue to 36 cents before a break below 29 cents drags prices further below 20 cents. Unless a fast break happens above 38 cents high, the technicals are not speaking well of the near-term future of XRP. XRP bearish phase is probably not yet over.
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