Ripple is dropping below 30 cents after the bullish momentum slows down. The following technical analysis is based on the Elliott wave theory.
September 20, 2019 | AtoZ Markets – Ripple had a good bullish breakout from the bearish trap this week. From mid-August, the bulls resisted a bearish break below the all-important support zone at 23.5-24.5 cents. A break below this zone would have seen XRP slump to 20 cents or even below. However, a bullish break happened instead as XRP hit 32.67 cents for the first time since August 5. Meanwhile, the cryptocurrency slumped sharply to 28.2 cents on Thursday as Bitcoin dragged the entire market down. There has been a bit of recovery but the price still remains in a bearish zone. At the time of writing, Ripple was priced at 29.4 cents.
This week, the Altcoins aggregate has performed better than Bitcoin. Bitcoin market dominance has been reduced to 67.7% from 70% as a result. Ripple is not the best gainer today but it’s among the top gainers this week. Bitcoin did not rise with the altcoins on Tuesday and Wednesday. However, we reckoned that if the Alts will truly maintain the surge, Bitcoin will have to come into the picture to boost trade volume and volatility. However, BTC slumped on Thursday instead and Ripple has now retreated from 32.75 cents to the current price level.
Ripple analysis: important price levels
Resistance Levels: XRP price broke above the 26.7 cents, 28 cents and 29.5 cents resistance levels but could not hit the 34 cents and 37 cents critical levels before dropping. If it thus resumes upside, we should watch out for these levels either as targets or turning points.
Support levels: Price has broken away from the deadly 23-24.5 support zone. XRP is currently at the 29.3 resistance turned support short-term price level.
Ripple price prediction: Elliott wave analysis
When the surge happened on Tuesday, we used the chart below in the last update to illustrate two high likely scenarios.
We expected resistance around 31 cents. Though price pierced a bit but has now returned below this level.
The chart above shows that XRP is not out of the bearish territory yet, especially with Bitcoin price getting closer to a bearish breakout. If the XRP price drops below 26.7 cents, then the bears are back in control and could drag below the support zone. However, the bulls might delay this if XRP surges above 32.75 cents. We might see a hit of the 37 cents resistance before the bearish trend resumes. Unless a massive trend-like breakout happens above 40 cents, rally below 40 cents could end up as a temporary bounce especially if the chart structure is corrective.