Ripple is Expected to Produce Yet Another Exponential Upside Wave

Ripple is Expected to Produce Yet Another Exponential Upside Wave

Published: August 19th, 2020

Weekly chart

XRP/USDT Weekly Technical Analysis 19 Aug 2020

On the Weekly logarithmic chart, we have all available XRP/USDT data from the Binance exchange. During past few years, Ripple has been moving within the descending channel but in the first week of August price broke and closed above the channel. This is the first bullish signal in a long time, which might result in the price moving up towards the nearest Fibonacci resistance level, which is at $0.43 per XRP. Currently, the price remains just above the $0.28 support area, which previously has proved to be extremely strong resistance. Certainly, there has been a huge price pump throughout the past 7 weeks, and considering current price action, investors are still holding up to Ripple.

2-Day chart

XRP/USDT 2-Day Technical Analysis 19 Aug 2020

The downtrend trendline has been broken along with the 200 Simple Moving Average. Then the price went higher and broke above the ascending channel. On the corrective wave down, XRP/USDT has reached and rejected $0.26 support, which is the breakout point of the downtrend trendline. Fibonacci retracement indicator was applied to the breakout point to show the final upside target for the potential continuation of the rally. It shows that 0% Fibonacci target corresponds to the 23.6% Fibs as per the Weekly chart.

The extended ascending channel shows that the upside target could be reached as soon as September 20. If this scenario will prove to be true, XRP will rise by another 50%. But of course, if uptrend will be the case, the price can easily hit this resistance sooner than the predicated date.

Daily chart

XRP/USDT Daily Technical Analysis 19 Aug 2020

Here price broke above the average-price downtrend trendline, suggesting further growth. The most recent pullback resulted in a clear rejection of the 38.2% Fibonacci retracement level at $0.266. And prior to that, we see there was a clear rejection of the 50% Fibs at $0.247. All this price action is very bullish and to confirm the upside target once again, we have applied Fibs to the correction down where 50 EMA was rejected. It shows that the 1027.2% level also corresponds to $0.43 key resistance, making it a strong supply zone. But at the same time, break above this resistance might send the price up exponentially, towards the $1 or even higher.

In regards to the current price action, Ripple might continue to consolidate before/if the price will move up. In such scenario there is a possibility that XRP/USDT will test the $0.247 support level again as well as uptrend trendline.

8-Hour chart

XRP/USDT 8-Hour Technical Analysis 19 Aug 2020

Currently, we might be witnessing the end of wave 4, and based on the Elliot Wave theory, to complete the current trend cycle, there should be the final 5th wave to the upside. Considering that price broke above the downtrend trendline and currently rejecting the 50 EMA, the buying opportunity could have been presented today. However, if price will break below the EMA, Ripple might retest $0.247 level as has been already mentioned.

4-Hour chart

XRP/USDT 4-Hour Technical Analysis 19 Aug 2020

XRP broke above the descending channel hitting $0.32 high. On the current correction, the price drop was stopped by 88.6% Fibs at $0.284, which is being rejected right now. Yet again a very bullish price action if Ripple will be able to stay above the Fibonacci support.

Obviously the break below is possible, and in this case, the trend will still remain bullish up until the point where XRP/USD breaks below the $0.247 support. And only then the price might reverse to the downside, where bears can gain full control.

1-Hour chart

XRP/USDT 1-Hour Technical Analysis 19 Aug 2020

And finally, the 1-hour chart, where price broke above the downtrend trendline and currently rejecting both, the trendline and the 200 Exponential Moving Average. Can this be the very beginning of a bull run? Soon we will find out.

Summary

Ripple is still trending up and there are no signs of a trend reversal. Price has rejected multiple support indicators and besides, currently, it is also at the EMA support on several charts. The current price could be of great interest to investors as well as speculators.

Upside targets

There is only one major upside target confirmed by at least 3 different Fibonacci retracement levels. It is located at $0.43 and considering that currently, XRP is trading near $0.3, this will be a potential 50% growth in the next month or two.

Probability of a downtrend

Speaking of a downtrend, as usual, there is a small probability that price will reverse to the downside. Although considering the strongly bullish cryptocurrency market in general, it is highly unlikely that XRP/USDT will revers down fast or at all. However, anything is possible in the financial markets and the only scenario where downtrend could be considered valid is a daily and/or weekly close below the $0.247 support level.

Support: $0.266, $0.2447

Resistance: $0.326, $0.431

Show Results