Despite the ongoing correction, XRP should bounce and resume its upward movement towards the targets given in this article.
XRP’s Long-Term Levels
On Nov. 21, the XRP price moved above the $0.48 area, which had been acting as resistance since the beginning of 2019. It reached a high of $0.79 on Nov. 24 but has been declining since, leaving a long upper wick in place.
The price returned to the $0.48 area again, possibly validating it as support in the process.
Technical indicators on the weekly time-frame are bullish, supporting an upward move.
If XRP begins to rally, the next closest resistance area would be at $1.34.
The daily chart shows that XRP is currently trading between the 0.5 – 0.618 Fib retracement levels of the most recent upward move at $0.44 – $0.51. This is a very likely area for a reversal and also coincides with the previously outlined long-term support.
Despite this, technical indicators on the daily time-frame are firmly bearish. All three of the: RSI, MACD, and Stochastic Oscillator are moving downwards, the latter having just made a bearish cross.
A closer look reveals that the movement since Dec.1 is perfectly contained inside a parallel channel. It’s slow and choppy and indicates that it’s probably a corrective movement.
Both the RSI and MACD are forming bullish divergence. Combine this with the fact that it’s trading inside a strong support area, and a bounce seems likely.
The wave count suggests that XRP began a bullish impulse once it reached a low on June 27. This was confirmed after the breakout from the parallel channel connecting waves 1 and 2 (shown in orange in the image below).
Currently, XRP is close to touching the channel’s resistance line, in what could be described as a 4th wave pullback.
If correct, XRP will soon begin another upward move to complete wave 5. A likely target for the top of wave 5 would be between $1.16 and $1.18, the 1.61 Fib extension of waves 1 – 3 (orange) and the projection of the length of waves 1-3 to the bottom of 4 (black).
A fall below the wave 1 high at $0.326 (dashed red line) would invalidate this particular wave count.
Cryptocurrency trader @Thetradinghubb tweeted an XRP chart in which price is trading inside a triangle. He believes this is a 4th wave triangle.
While XRP is most likely in its fourth wave, as stated above, it’s not yet determined if the correction has taken the shape of a triangle.
It almost looks like a descending triangle. It’s also possible that XRP is nearing the end of a complex, W-X-Y correction and will then move upwards.
In any case, it seems that XRP is nearing the end of its corrective structure.
To conclude, the XRP price should reach a bottom soon, possibly between $0.45 – $0.47, and begin to move upwards, eventually increasing above $1.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.