Ripple‘s local cryptocurrency, XRP Coin, experienced a drop due to the general market sentiment following an important victory against the SEC. The judge’s ruling against cryptocurrencies in the Terra case was the first major event that shook the price. So what does the current situation tell us? What levels should XRP Coin investors focus on?
Ripple (XRP) Analysis
Ripple’s XRP price experienced a breakout from the 700-day resistance line, resulting in a yearly peak of $0.94. However, the price has since dropped, confirming the strength of the $0.90 resistance area. The successful breakout has maintained the long-term bullish trend. Although the short-term trend is still uncertain, it appears likely that the price will soon clarify its bottom and continue its journey north.
The weekly chart shows a positive outlook for XRP Coin’s price. The main reason for this is the breakout of the descending resistance line that has been in place for 700 days. Breakouts from such long-term formations often lead to significant uptrends and indicate the culmination of prolonged downtrends. Given that many altcoins have experienced similar breakouts, investors’ expectations for a general market rally are also increasing.
XRP Coin Chart Analysis
In the short term, the six-hour chart also provides positive readings. The primary reason for this bullish sentiment is the Elliott Wave count. Technical analysts use the Elliott Wave theory to decipher recurring long-term price formations and investor psychology. According to the most probable wave count, the current XRP price is in the fourth wave of a five-wave uptrend.
If a bottom has not yet been reached, the most probable area for it is around $0.64, defined by the convergence of support levels. These support levels include the 0.618 Fibonacci retracement support level and the previous ascending parallel channel. A strong bounce at this level will confirm the start of the fifth wave. The price has almost reached this level and a bounce appears imminent.
Despite the bullish forecast for XRP’s price, closes below $0.56, the low of the first wave, can result in a drop to $0.5. On the other hand, in the scenario where the uptrend continues, the $1 target can be surpassed.
