After a big push to 32 cents on Saturday, Ripple has retreated into the triangle zone. What could happen next?
April 01, 2019. AtoZ Markets – Ripple continues to be supported above 30 cents. Attempts since late February to break below this price level have failed. However, similar price activities are displaying to the upside. Price is consistently resisted below 33 cents after February’s 35 cents push couldn’t be sustained. Price has been in sideways patterns that can both be interpreted bullish or bearish depending on where the breakout happens.
Ripple partners with India’s Federal Bank
News about Ripple in March have been positive. One of the biggest news was Ripple’s integration into WooCommerce. The latest positive news is the entry of Ripple into India’s remittance industry. It was announced that India’s Federal Bank will partner with Ripple to facilitate cross-border payments. The bank made this announcement to the Bombay Stock Exchange. The partnership will include the bank using Ripple blockchain technology to make cross-border remittances. However, it’s unclear whether the deal will involve the use of the Ripple cryptocurrency. This is good news nonetheless to the Ripple community as adoptions like this could increase investors’ confidence in the cryptocurrency and thereby lead to higher prices. However, any effects on price might be short term.
Ripple has not seen much activities in 2019. In March, market capitalization and trade volume ranged between $12.5 -$13.3 billion and $600-800 million respectively according to CoinMarketCap. This is less than February’s highs of $13.8 billion and $1.2 billion for market cap and trading volume respectively. Price is, therefore, completing a sideway pattern and so far, a significant breakout has not happened yet in either direction.
Ripple technical analysis: where will the breakout happen?
Triangle patterns are often continuation sideway patterns. The resultant breakout often happens in the direction of the prevailing trend before the triangle. The chart below shows the possible triangles emerging and how the breakout could happen.
After the November 2018 crash, Ripple resisted a new low and price was supported a bit above 28 cents. The rally that follows has not been sustained above the December high of almost 47 cents. Price crashed in January to retest 28.6 cents. Since the retest, the price has gone sideways. When price goes sideways in this manner and for this long, triangle patterns come to mind. However, the first triangle pattern that can be spotted in this sideways move started from the dip below 35.5 cents that started late February when volumes hit above $1 billion mark. The triangle is about to complete. A bullish breakout to 35-38 cents is very likely.
On the other hand, if the bullish breakout is resisted below 35.5 cents, the current sideways run might continue throughout this month to complete a bigger triangle pattern. However, the bigger triangle pattern was preceded by a bearish run. In all the scenarios, Ripple might still take one more leg downside after rallies toward 35-37 cents unless a huge bullish move is triggered above 45 cents.
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