Ripple price dropped quickly to 40 cents on Thursday as the cryptocurrencies saw red. The following looks at what could happen next based on the Elliott wave theory.
June 27, 2019 | AtoZ Markets – Ripple is far more underperforming than any other cryptocurrency in the top 7. The crypto which still remains the 3rd largest on coinmarketcap based on market capitalization has refused to maintain consistent rallies. In a period when Bitcoin maintained almost three weeks of consecutive bullish days, Ripple has gone back and forth with no clear direction.
Bitcoin hit $13,900 on Wednesday to complete a 350% gain since December. Litecoin and Bitcoin cash have both gained over 500% since December when they hit their highest prices in May. Ripple hit 50 cents last week to complete a 73% gain since December but quickly dropped to 45 cents. XRP price is currently trading at 42 cents after the dips seen across the board dragged it very close to 40 cents.
Ripple analysis: will XRP recover?
At the current price, Ripple has only gained about 42% since the December low. The cryptocurrencies are currently correcting after massive surges. It remains to be seen how deep the current corrections will go. However, if Ripple will recover from the current dip, it should be well supported above 37 cents. A fast dip below 37 cents could threaten to hit the main support zone at 28.5-30 cents. At the same time, a big surge above 51 cents should happen to continue the May 2019 bullish breakout to 48 cents. Ripple dropping into the 36 cents- 48 cents bearish zone is threatening to the bulls until a massive breakout above 50 cents happens.
Ripple price prediction: Elliott wave perspective
From the Elliott wave perspective, it was expected that Ripple will continue the rally from 28.5 cents to complete a bullish impulse wave like other major cryptos. After it rallied to 48 cents, it dropped to 37 cents to complete a flat corrective pattern. The chart below was used in the last update where we expected a big surge after a minor dip.
Wave 1 and 2 (circled) ended at 48 cents and 37 cents respectively. Wave 3 (circled) was expected to break above the 48 cents high. The breakout happened but the bulls lacked the momentum to continue the move. The chart below shows the new update.
This wave forecast still supports the bulls. However, price is now taking so much time and then looks sideways. A break above 51 cents is necessary to continue the bullish run from 28.5 cents to 48 cents. A dip below 35 cents will most probably lead to 28.5 cents and form a fresh year low.