Despite the drawdown, XRP remains bullish

CONTENT

  • Long-term resistance for XRP is located at $ 1.34.

  • Long- and short-term indicators are bullish.

  • XRP is likely inside an extended bullish 3rd wave.

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XRP rate rapidly rolled back from the high of November 24 to $ 0.79, but near the support levels it can turn around and start growing again.

Long-term dynamics

The Ripple project token (XRP) price made a bullish breakout from the Long-Term Falling Wedge pattern in July 2020 and has been strengthening since then. However, the price had to go through a phase of consolidation before the growth rate accelerated during the second week of November. As a result, on November 24, the market peaked at $ 0.79.

Taking into account the all-time high recorded in 2018, the nearest significant resistance, represented by the Fibo retracement level, passes at $ 1.34 (Fibo 0.382).

Although the market has formed a long upper wick on the chart, the technical indicators on the weekly timeframe remain bullish, supporting continued growth.

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XRP chart. Source: TradingView

Current growth

On the daily chart, you can better examine the price dynamics of the past week. In 4 days from November 21, the price increased by an impressive 153%, but in the next 2 days it sank by almost 40%.

The pair is currently trading directly above the 0.5 Fibo level of the $ 0.48 retracement. Fibo level 0.618 at $ 0.41 passes just below it.

Despite the decline, technical indicators continue to give bullish signals.

XRP chart. Source: TradingView

On the shorter-term 2-hour chart, the 0.618 Fib level coincides with the horizontal support, making this area a likely reversal area.

Meanwhile, neither the RSI nor the MACD is showing signs of a bullish reversal despite being oversold. In this regard, it would be reasonable to assume that the price will take another dash south before finally reverses and resumes growth..

XRP chart. Source: TradingView

Wave analysis

Cryptocurrency trader @TheEWguy shared an XRP chart with readers, commenting that the market is now within the 3rd extended wave of a bullish impulse structure, the completion of which could push the price above the $ 2 mark.

Source: Twitter

The most likely wave scenario speaks in favor of the XRP rate starting to form a bullish impulse structure after reaching the March 13 low (white on the chart).

If this assumption is correct, then the price is now inside the 3rd extended wave and inside its sub-wave 4 (orange). By expanding subwave 1, we can highlight the potential top of this structure at $ 0.92. However, this goal will depend on the level at which subwave 4 ends, so for now it is only an approximate.

Absorption of the high of wave 1 at $ 0.33 (red line) will neutralize this scenario.

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XRP remains bullish despite the drawdown

XRP chart. Source: TradingView

Possible basis

The likelihood that XRP is in a bullish structure is reinforced by the fact that price has made a bullish breakout of the parallel upward channel.

Wave 4 often makes a visit to the middle of the channel, this phenomenon is known as the 4th wave retracement. After that, the market resumes growth.

The middle of this channel is indicated by two important Fib levels as $ 0.33- $ 0.43.

XRP chart. Source: TradingView

Taking a closer look at sub-wave 4, we can try to narrow the range of the likely bottom. Wave 4 is represented by corrective structure A-B-C (blue).

If the ratio of waves A: C is presented as 1: 1.61 (which is quite common), then the price can form a low at $ 0.403. Accordingly, the most likely candidate for a bottom is the $ 0.403- $ 0.433 area.

XRP chart. Source: TradingView

Conclusion

Thus, the XRP rate can find a base in the $ 0.40- $ 0.43 region, after which it will resume growth in the direction of $ 0.92, and possibly $ 1.34..

You can read the latest Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinion expressed in this forecast does not reflect the opinion of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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XRP remains bullish despite the drawdown
XRP remains bullish despite the drawdown
XRP remains bullish despite the drawdown

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