Ripple is trading above a critical support zone as the sell-off could not penetrate. The following Ripple price prediction looks at what could happen next.
September 11, 2019 | AtoZ Markets – Last week, Ripple price gained about 7.8% when it rallied from 24.75 cents to 26.7 cents. However, this week, the bears have eaten into much of the gain as price plummets to 25.28 cents before a minor recovery to 25.5 cents. 26.7-26.75 cents now stands as an intraday resistance zone and the highest price levels in September so far. Despite the current dip, the third-largest cryptocurrency is still holding above the 23.5-24.5 cents support zone for nearly one month after it bounced off it. At least the bulls can find a succour in this and mount a challenge toward a much higher bullish correction or a complete bullish recovery.
Generally, the bullish trend in the cryptocurrency market at the start of 2019 is being tested after the market shed $120 billion since it peaked in late June. The altcoins generally have dropped over 65% of their value since then. Ripple has dropped far more – over 100% to hit its lowest price since December 2017. Many have wondered why Ripple has performed far worse than any of the top Cryptos both during the bullish half of the year and the current bearish runs. The main reasons are far-fetched but there are reports in recent weeks about large Ripple dumping. Could this be the major reason?
Ripple dumping continues: should investors worry?
We reported last week that Ripple transferred 500 million of its XRP tokens on September 3. While the company defended itself, many of its investors were wearied of ‘dumping’. More recently, there was another case reported – 100 million XRP transferred to McCaleb who is one of the founders of the Fintech firm. In addition, McCaleb now sells 500,000 XRP every day after Coinmetrics.com affirmed that he is entitled to sell 750 million XRP this year. These are huge figures that would definitely raise eyebrows. Ripple is currently priced at 25.4 cents and is less than 2 cents away from making a fresh 2019 low – which will turn to a fresh 2-years low.
Ripple price prediction: Elliott wave analysis
From the Elliott wave perspective, Ripple’s rejection of the 23.5-24.5 support zone could be followed by a bullish correction toward 34 cents or even 37 cents. In the last update, the chart below showed a bearish impulse wave was close to ending.
The ending diagonal 5th wave could have breached the support zone slightly. However, the price pushed to 26.5 cents from 24.75 cents instead.
If XRP holds above 24.75 cents, a break above 26.75 cents could trigger a bullish correction toward 34-37 cents. On the other hand, if the current market mood does not change, XRP may continue sideways to complete a triangle pattern with 24.75 and 26.75 as the top boundaries. If this happens, a bearish break below the support zone might finally happen and drive XRP price to 20 cents.