The price of Ripple’s XRP dropped significantly on Apr. 19, as it was rejected by a crucial resistance area. However, there is still hope for a potential reversal as long as the price reaches a bottom soon.
The XRP price had increased after breaking out from a descending resistance line on Mar. 21. This led to a new yearly high of $0.585 on Mar. 29. However, the ensuing decrease puts the bullish structure at risk of being invalidated.
Ripple Price Falls Below Important Resistance
The XRP price has been moving downward since XRP reached its yearly high of $0.585 on Mar. 29. Despite appearing to have cleared the $0.530 resistance area, the long upper wick suggests weakness and means the area now acts as resistance again.
After creating a lower high on Apr. 18, the digital asset fell once more and broke down from the $0.485 horizontal area the next day. It validated the area as resistance on Apr. 24, creating another long upper wick (red icon) during the next 24 hours.
Such wicks are considered signs of selling pressure since buyers were not able to sustain the price. Rather, sellers took over and pushed the price below the period opening.
While there is no imminent news regarding the Ripple vs Securities and Exchange Commission (SEC) case, it is worth noting that a 2018 lecture by Gary Gensler, the SEC chair, in which he stated that cryptocurrencies are not securities is making rounds.
This directly contradicts the claims made in the ongoing case.
XRP Price Prediction: Wave Count Predicts 50% Increase
The price analysis based on the six-hour price movement indicates a bullish XRP price prediction due to the wave count. Technical analysts use Elliott Wave theory to identify recurrent long-term price patterns and investor psychology to determine market trends.
The theory suggests that the current price of XRP has completed the fourth wave of a five-wave upswing, which is a positive signal for its future price.
The prediction suggests that XRP could move above the $0.530 resistance. The most likely target is between $0.673 and $0.722, found by the 1.61 Fib extension of wave four (black) and the length of waves one and three projected to the bottom of wave four (white).
Fibonacci retracement levels suggest that after a substantial price move in one direction, the price will partially retrace or return to a prior price level before continuing in its original direction, and this principle can be used to determine the peak of potential future upward movements.
Looking at the above indicators, it can be devised that if the XRP price manages to move above the $0.485 area, it could increase to $0.530 once more. However, if it gets rejected, a fall to $0.425 will be on the cards.
Furthermore, a decrease below the wave one high of $0.430 will invalidate this bullish XRP price forecast. In that case, the XRP price could drop to $0.360.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Source: https://beincrypto.com/xrp-price-slump-reversal-bottoming-out/