On Mar 26, XRP reached a low close to $0.3. Afterward, it initiated a rapid movement which took it to a high above $0.38 on Apr 5.
A gradual decrease followed that intensified on Apr 11.
At the time of writing, the price is trading close to $0.33.
How long will the price of XRP keep dropping?
Let’s find out:
XRP (XRP): Highlights and Trends For April 10, 2019
- The price of XRP/USD has been on an uptrend since Mar 25.
- XRP is trading inside a symmetrical triangle.
- Bullish divergence is developing in the RSI.
- There is resistance near $0.35 and support near $0.3.
On Mar 28, the price reached an hourly low of $0.308. Several market cycles were completed. The price has created higher lows each time.
Tracing these lows gives us an ascending support line:
On Apr 3, the price reached a high of $0.381. Several market cycles have been completed and the price has made lower highs each time.
A descending resistance line is created by tracing these highs. Taken together, the resistance and support lines combine to create a symmetrical triangle:
The trading pattern alone cannot determine if a breakout will occur. To assess this possibility, we need to take a look at a longer time frame combined with some technical indicators.
To determine possible future price fluctuations, we analyze XRP/USD from December 2018 to April 2019 alongside the RSI.
Combining RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations.
On Apr 3, the price reached a high of $0.381. It reached a similar high on Apr 5.
Similarly, the RSI made the first high on Apr 3. However, it has proceeded to generate lower values.
Bearish divergence is, thus, observed. However, we cannot necessarily expect price decreases since XRP/USD has been following an ascending support line since Dec 15.
Using this indicator, a breakout from the triangle is unlikely. Additionally, while we cannot confidently predict a breakdown, we believe that it is possible.
To determine the actual possible future price levels given an increase, we incorporate resistance and support areas into this analysis.
This resistance area is found near $0.35. It coincides with the resistance line of the triangle. We do not believe the price will move above this area.
The closest support area is found near $0.3, coinciding with the long-term support line. If the price were to break down from the triangle, it is likely that it would reach this area.
Summary of Analysis
Based on this analysis, the price of XRP is likely to trade inside the confines of the symmetrical triangle, and possibly break down and reach the support area at $0.3
For price 2019, 2020, and five-year XRP/USD price predictions click on the green button 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.