On Apr 3, 2019, XRP reached a high close to $0.386 and €0.338. A rapid drop ensued, and the price reached lows close to $0.313 and €0.278 on Apr 15.
At the time of writing, the price is trading slightly above $0.33 and €0.295.
Will the price of XRP continue to increase or is a drop in store?
Let’s find out:
XRP (XRP): Highlights and Trends For April 19, 2019
- The price of XRP has been on a downtrend since Apr 10.
- It is trading inside a descending channel.
- An evening doji star was created by the Apr 18 daily candle.
- XRP is trending along a long-term support line.
- There is resistance near $0.35/€0.3 and support near $0.30/€0.265.
On Apr 4, the price reached a low of $0.325. Several market cycles were subsequently completed. The price has created lower lows each time.
Tracing these lows gives us a descending support line:
On Apr 5, the price reached a high of $0.386. At the time of writing, several lower highs had been reached.
A descending resistance line is created by tracing these highs. Taken together, the resistance and support lines combine to create a descending channel:
The trading pattern alone cannot determine if a breakout will occur. To assess this possibility, we need to take a look at daily candlestick patterns.
Evening Doji Star
The price began an uptrend on Apr 16. Two bullish daily candles were created.
The Apr 18 candle had a very long upper wick. This indicates that buyers drove prices up during the day, but they encountered selling pressure that drove prices back down. Since this is occurring in an uptrend, the selling pressure is viewed as a potential reversal sign.
Based on the creation of this pattern, we believe the price will continue to decrease.
To determine the actual possible future price levels given an increase, price is analyzed on one-day intervals from December 2018 to April 2019. Resistance areas are incorporated for assistance.
The closest resistance area is found near $0.35/€0.3. The price reached this area and was rejected. We do not believe a breakout above this area is likely.
The closest support area is found near $0.3/€0.265, coinciding with the long-term support line since Dec 2018. We believe that XR will eventually reach this area.
Summary of Analysis
Based on this analysis, the price of XRP is likely to decrease at the rate predicted by the channel and eventually reach the long-term support line.
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.