XRP Struggles to Stay Above $0.30 as Losses Continue (Ripple Price Prediction Updated March 26)

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Will XRP rebound from these losses or will price fall below the $0.30 mark? Based on today’s analysis, we predict that XRP will keep trading inside its current wedge with slight price increases in the near future. The price of XRP might then partially recover from the Mar 21 high before new lows are experienced. It is possible that as price moves back toward support, there may be a breakout. However, the breakdown we suggested as a possibility on Mar 25 has yet to materialize. Thus, while price increases are expected, a breakout is suggested as possible but less likely.

XRP (XRP): Trends and Highlights for March 26, 2019

• The price of XRP experienced a flash crash on Mar 21.
• XRP is trading inside a descending wedge.
• There is bullish divergence developing in the RSI.
• There are resistance areas near $0.313, $0.317 and $0.324.
• There is support near $0.304 and $0.295.

Tracing Resistance

The price of XRP on Binance is analyzed at two-hour intervals from Mar 19 to Mar 26. The price reached a high of $0.328 on Mar 20. A sharp drop ensued, followed by a gradual downtrend move. The price has made successively lower highs. Tracing these highs gives us a descending resistance line: The resistance line acts as a ceiling to price, preventing further upward movement. It theoretically traces the upper limits of the price and measures the rate of decrease. The price has been decreasing at the same rate as predicted by the resistance line. Breakouts above the line such as the wick highs of $0.326 and $0.324 on Mar 21 can be considered insignificant since they were not supported by continuous gains. The price is likely to keep decreasing at the same rate predicted by the line. Taken without other trends or indicators, this suggests continued gradual price losses.  However, a reversal may be forthcoming based on a deeper analysis. 

Descending Wedge

XRP reached a low of $0.306 on Mar 21. It immediately rebounded and closed at $0.312 on the same day. An upward move was followed by a gradual decline. XRP made a lower low of $0.30 on Mar 26. Several market cycles were completed along the way with each low being lower than the previous one. Tracing these lows gives us a descending support line: Similar to the resistance line, the support line acts as a floor to price, preventing further downward movement. In the case of XRP, it currently measures the rate of decrease. The resistance and support lines combine to create a descending wedge. This is a bullish pattern and suggests that price increases are more likely than decreases. On Mar 25, we predicted a breakdown. At the time of writing, this has yet to occur. However, a breakdown below support is still possible. In such a case, the price may continue decreasing. Losses might even accelerate. On the other hand, prices may rebound back into the wedge and move toward support. It is also likely that having reached resistance, the price will begin increasing in the more immediate future without a prior breakdown. Following movement toward the support, a breakout is possible. Incorporating technical indicators into the analysis leads us to believe that price increases followed by a possible breakout are more likely than a breakdown with continued price losses. 

Future Movement

Combining MACD and RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations. The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move. The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market. On Mar 21, the price made a low of$0.306. Alongside the creation of the wedge, it has made lows at $0.302 and $0.30 on Mar 25 and 26 respectively. Similarly, the RSI made a low on Mar 21. However, it has continued to generate higher values since. The Mar 21 low is still the lowest value recorded. The same movement is observed between the Mar 25 and Mar 26 lows. This is known as bullish divergence and often precedes price increases. The possibility of increasing prices becomes more likely if bullish divergence occurs in a bullish pattern. This is the case in XRP which is currently trading within a descending wedge—a bullish pattern. These indicators lead us to believe that price will increase to the resistance and possibly breakout.  We anticipate a breakout before the support and resistance converge; however, a breakout might not be possible until the wedge fully closes. 

Resistance and Support

The price of XRP on Binance is analyzed at four-hour intervals from Feb 24 to Mar 22 to better visualize future possible resistance and support levels. Resistance and support lines are created when the price revisits the same level several times. There are three visible resistance areas, near $0.313, $0.317 and $0.324. In the case of a breakout, they would provide likely reversal areas. Based on our analysis, it is likely that the price will eventually reach one of these areas. The closest support area is found near $0.304, coinciding with the end of the wedge. The price is currently trading in this area. The next support area is found near $0.295. If the price breaks down from the wedge, it is likely to reach this area. Based on our analysis, it is unlikely that the price will reach this level. 

Summary of Analysis

Based on this analysis, the price of XRP is likely to trade inside the confines of the descending wedge before eventually breaking out. If the price keeps trading inside the wedge until a point of convergence occurs then breaks out, the prediction will be fully validated. A breakdown below support will invalidate this prediction. Do you think the price of XRP will eventually break out from the wedge? Let us know in the comments below. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.