Ripple fell back below 26 cents after a slight bullish push could not be sustained. The following XRP technical analysis is based on the Elliott wave theory.
September 16, 2019 | AtoZ Markets – Ripple has spent the last four weeks in a sideways triangle range with the top and bottom at 29.5 cents and 23.75 cents respectively. Just before last week ended, XRP surged to 26.6 cents and was just a bit away from breaking above the 27.6 cents resistance level. A recovery toward 34-37 cents would have been expected if the bullish breakout had happened. However, in the last 48 hours, XRP has dropped its value and currently priced at 25.8 cents. It has thus fallen back into the range to probably shake out the short-term bulls before a massive breakout. However, at this stage, a bullish breakout can’t be written off.
After Ripple surged during the weekend, Bitcoin dominance dropped from 70.1% to 69.5%. With a market capitalization of $11.16 billion, Ripple remains unchallenged as the third-largest cryptocurrency. However, its performance this year has left very little to dream about. Last month, it hit its lowest price since December 2017. Many have related XRP’s poor performance to some ‘dumping’ activities which involve daily heavy sell-off of millions of Ripple tokens by one of the Co-founders. With the ‘dumping’ activities set to continue throughout the year, some investors have been discouraged with no hope of a significant recovery in the last quarter of the year.
Ripple analysis: important price levels
Resistance levels: 26.7 cents, 28 cents, 29.5 cents, 34 cents and 37 cents. The XRP price will have to break above the intraday resistance level at 26.7 cents to hit these levels.
Support levels: 23-24.5 remains an important support zone. A break below this zone could cause a dip to 20 cents or even 12 cents.
Ripple price prediction: Elliott wave analysis
In the last update, we looked at the two most likely scenarios. A bullish break above 26.7 cents would have triggered the first scenario which expected a 3-wave bullish correction to 34-37 cents. However, XRP dropped below 26 cents without a breakout. These two scenarios are still invalid.
The chart above shows the second scenario about to complete a bearish triangle pattern with breakout neckline at 24-24.5 cents. A breakout could happen in any of the directions however, the bearish direction seems to be more likely.