Ripple has lost nearly 8% in the last 24 hours as the Cryptos turn red today. Price broke below an intraday bearish wedge pattern as part of a bullish retreat. Is XRPUSD eyeing $0.5?
Ripple advanced from the bearish zone, gained 200% to hit $0.76 from $0.25. The rally started on 12th September and continued till 21st September. From 21st September, it quickly shed 43% to $0.45 four days after. Few days back, 30th September, Ripple was trading at $0.62 but today’s crash has seen price back at $0.55. It seems the bearish correction that followed the swift bullish move to $0.75, would continue and probably retest the $0.5 handle before returning upside.
Ripple technical analysis; Important price levels
0.62 and 0.76 remain the most visible resistance levels. If price returns to 0.62, we might see a retest of 0.75. A bridge above 0.75 will likely set the Crypto coin free to $1. On the downside, 0.43 and 0.37 are the most viable support levels. The current dip might retest 0.5 handle. If price drops below 0.5, the next target is 0.43. A drop below 0.43 might likely see price at 0.37 (a resistance level in August now turned support).
XRPUSD Elliott wave analysis
The chart above shows an advancing impulse wave from 0.245. There are two scenarios. The first scenario assumes the 4th wave of the impulse wave rally has already completed at 0.43 and the rally that followed is wave i (blue) of v (black). If this scenario holds, we will see a re-test of 0.5 (or slightly below) to complete the second sub-wave of wave 5 of the impulse wave rally from 0.245. To validate this scenario, 0.43 is expected to hold firm as a support level. However, if price breaks below 0.43, we might be having wave iv still running with one leg to complete. 0.4 is expected to hold in this case. If this scenario holds, price will stay above 0.37 (with 0.37-0.4 acting as a support zone) and head back upside. A bridge below 0.37 will turn Ripple back bearish, with a dip below 0.245 leading to a new low, a possibility.
Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below. Don’t forget to share this analysis with people that matter to you.