Ripple has surrendered all the profit made earlier in the month after losing 17%.
April 16, 2019, AtoZ Markets - The cryptocurrency market is retreating from the quick rallies seen early in April. There was an additional $40 billion added to the market capitalization between January and April making a good year so far. Despite the rallies, there were other sides of the markets that suggest that new lows could be followed. In the last week, the market has lost about $8 billion to now settle for a total market capitalization of $172 billion.
Most of the cryptos are now moving downside but some still maintain a positive April overall. Some, however, have returned to pre-April price regions. Ripple is in the second category. The big crypto ranked 3rd on Coinmarketcap based on market capitalization, has dropped back to 31 cents.
Ripple's April rise and fall
Ripple started a big surge on April 1 against the USD. It rallied for three days to hit 37 cents from 32 cents. The big breakout was expected as price just completed a bullish triangle pattern. Ripple thereafter dropped back to 32 cents between 3rd and 4th April. The following day it spiked to 38 cents but couldn't maintain the bullish momentum. Since it started dropping on April 5, it has not recovered and looks likely to continue to 30 cents. The Bitcoin and Ripple technical overviews are quite dissimilar. While Bitcoin looks very much likely to rally further, Ripple seems to be rooted to the downside and seemingly destined for a new low. We will see how this plays out in the coming weeks.
Ripple technical analysis and important price levels
In the last update, we had two likely scenarios. One of the scenarios was that price would dip from 38 cents to 35 cents and break upside to a new high. The chart below was used.
On the other hand, what if the price is completing a zigzag corrective pattern instead? Price hit multi-weeks high at 38 cents which were just a bit above the rising zigzag channel. The zigzag pattern would be confirmed by a dip to retest 32 cents. That is exactly what price is doing and it spells bearish. The chart below shows the new update.
A zigzag pattern from 28 cents to 38 cents seems to have completed and price is dropping in the direction of forecast. A dip below 30 cents will most likely lead to a new low for Ripple. Unless a big spike above 38 cents happens, Ripple remains bearish and will make a new low.
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