Ripple recovered from over 12% dip to make a new high at 38 cents. Where is the next bullish target?
April 05, 2019. | AtoZ Markets - Ripple has spent very little time to recover from Thursday's dip to retest 32-33 cents support levels. The cryptocurrency market has witnessed huge momentum in April so far. Ripple broke out of a minor triangle to hit 37 cents - a move that was seen in most cryptos if not all. The call for the end of the crypto winter has been justified so far. The rally from December does not look corrective anymore after major levels were taken out quickly.
Prior to the surges seen across the board, patterns on crypto charts screamed bullish. Especially on Ripple, the bullish breakout to 38 cents was very much likely. Why? A triangle pattern completed between late February and end of March. Triangle patterns often precede big moves. We have seen this happened many times since the crypto prices were plotted on charts. These patterns exemplify periods of silence and indecision. A period of battle when the bulls and the bears push the market until lines drawn from extremes of the range form a triangle shape. The breakout often happens in the direction of the preceding trend and often comes with a much bigger volume. In the case of Ripple, there were two clear scenarios as identified in the April 1 update prior to the fast breakout.
Ripple technical analysis and important price levels
The chart below was used in the April 2 update
The first scenario expected a hit of $37-38 to complete a zigzag pattern before the bearish trend resumes. If it continued below 35.5 cents to complete the bigger triangle (in blue), the signal will be clearly bearish. Price opted to hit 38 cents. What next?
Price hit the 38 cents bullish target. A fast dip afterwards was about to favor a zigzag correction leading to a lower price low. However, a swift move above 38 cents creates a room for a bullish wave scenario from the low. Wave (i) completed at 35.5 cents followed by a wave (ii) dip to 30 cents. Wave (iii) is in motion and a move to 40 cents at least is necessary to confirm the impulse wave scenario. If price hit 40 cents or any price around it, buyers could wait to buy the next dip. We can't be certain of how deep it will be.
On the other hand, if price drops from the current position to 32 cents to make a double top at 38 cents, the Ripple or crypto winter might not be over yet.
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