Ripple is in a corrective dip this week after hitting 48 cents 2019 high last week. What could happen next? The following technical analysis is based on the Elliott wave theory.
May 21, 2019 | AtoZ Markets - The cryptocurrency market is staging recoveries across the board after prices followed the Bitcoin fast crash on May 17. Bitcoin is currently trading between $7,900 and $8,000 after it almost hit the $8,400 high recorded last week. Ripple is a bit farther than its 48 cents high but the dip looks corrective and XRP price could yet make higher highs before the end of this half of the year.
In the 2019 crypto bullish rush, XRP came very late after spending most of the year struggling to move out of a converging triangle pattern. The breakout finally happened in mid-May when the major cryptos have already gained in excess of 100% or more. Ripple's current market capitalization which currently stands at $16.5 billion ensures it remains the 3rd largest crypto in terms of market capitalization. Since the recent dip, XRP has lost about $4 billion and currently trades at 39 cents.
Ripple price prediction: Elliott wave perspective
After the breakout above the triangle, it was expected that XRP would hit 52-55 cents in its first rally. However, XRP price hit above the 46 cents previous top but was short of the 52 cents before the current dip caused a minor setback. In as much as price doesn't enter below the triangle support line, the bulls are expected to start new waves of rallies. In the last update, we started counting an impulse wave from 28.5 cents. The chart below shows a minor adjustment to that.
The chart above shows a possible impulse wave rally and price accumulating momentum below 40 cents. Wave (i) ended at 48 cents and the 2nd wave is ongoing with three legs (a zigzag/double zigzag structure). Wave (ii) could continue to 33 cents before wave (iii) gets underway potentially to 70 cents. If the bullish impulse wave completes, XRP is expected to hit 80 cents - $1 before the next major bearish dip. Ripple could be the biggest mover in the next couple of months. However, if price enters into the mouth of the triangle between 30-31 cents, a retest of 28.5 cents is very much likely.