Ripple almost touched 27 cents on Tuesday. Will XRP build on this? The following technical analysis is based on the Elliott wave theory.
September 03, 2019 | AtoZ Markets - Ripple sell-off has been rejected at the 24-25 cents support zone for the second time in two weeks. In the last six days, XRP has stayed above 24 cents. With the Tuesday surges seen across the board, the third-largest crypto rallied to 26.6 cents - still some way away from the nearest resistance level at 28.1 cents. XRP has performed very poorly in 2019. It has gone 2 cents below 2018 low and in the last one week, traded at its lowest since December 2017. In comparison, Bitcoin has gained a net 200% despite the current fall which started in late June. Ethereum, Litecoin and Bitcoin Cash are also floating with significant gains in 2019.
Ripple analysis: important price levels
Ripple started September at 25 cents with 24-25 cents providing support against more sell-offs. If the zone continues to hold and XRP is lifted above 28 cents and 29.5 cents resistance levels, then we might see a hit of the next resistance level at 34 cents. We should see XRP price come back alive if it breaches 34 cents to the upside quickly. On the other hand, if the 24-25 cents is taken out, 20 cents and perhaps 12 cents will be the next levels of interest.
Ripple price prediction: Elliott wave analysis
Since XRP topped at 51 cents in 2019, it has fallen continuously and now about to complete an impulse wave. This might also mark the end of the long term bearish correction. In the last update, we looked at how the impulse wave was emerging. The chart below was used.
Wave v was in motion and we expected a breach of the 24 cents low with eyes on 20 cents and 12 cents. However, price bounced off this support zone. The new chart below shows an alternative - an ending diagonal pattern. A simple zigzag ends with an impulse 5th sub-wave or an ending diagonal 5th.
An ending diagonal truncated 5th wave or a leading diagonal acting as the 1st sub-wave of the 5th wave leading to a much deeper dip to 12 cents is very much likely. The price will have to decide what will happen next. Any of these scenarios will work if price movement in the coming days or weeks validate it.