On Mar 14, 2019 the price of XRP (XRP) reached a high around $0.33. A steady downtrend followed. Currently, prices continue to decrease at a gradual rate with the possibility of an upward move in store. Here’s a look at the prices between Mar 13 and Mar 14:
In our Mar 13, XRP analysis, we predicted that a breakout in the near future would follow continuing price decreases. It appears we were right about the breakout; however, it occurred faster than we had predicted. Following the breakout, prices began to decrease losing almost all of the gains made before the spike since Mar 13.
Based on today’s analysis, we believe that XRP is about to initiate another upward move with higher prices expected in the near future.
Key Highlights For March 14
- The price of XRP (XRP) has been on an uptrend since Mar 4.
- The price is trading inside an ascending triangle.
- There is bullish divergence developing in the MACD.
- The price is trading inside a short-term descending wedge.
- There are resistance areas near $0.345 and $0.33.
- There is support near $0.304.
The price of XRP on Binance is analyzed at one-hour intervals from Mar 4 to Mar 14.
The price reached a low of $0.304 on Mar 4. The price has fluctuated since, completing several short market cycles. However, every dip has been higher than the last. Tracing these lows gives us the ascending support line.
The support line acts as a floor to price, preventing further downward movement. It theoretically traces the lower limits of the price over time.
A breakdown below the support line such as the wick low of $0.306 on Mar 8 is considered insignificant because it was not succeeded by continuous price decreases. On the contrary, XRP rebounded from this low and almost immediately began trading above the support.
Thus, it can be assessed that XRP’s price has increased at approximately the same rate predicted by the line.
It is likely that the price will continue to increase following this rate; however, price decreases might validate the line a sixth time before subsequent increases recommence.
The price reached a high of $0.326 on Mar 5. At the time of writing, this price has been reached three other times. Tracing these highs gives us a horizontal resistance line.
The resistance line effectively acts as a ceiling to price, theoretically preventing further upward movement. Highs above the resistance can be considered insignificant unless they are succeeded by sustained movement above the line. Thus, the wick high of $0.3328 on Mar 13 can be considered insignificant.
The resistance and support lines create an ascending triangle, which is a bullish pattern, making future price increases more likely. The use of the triangle pattern better predicts price movements than support or resistance lines alone.
If this pattern proves to be a reliable predictor of price, the overall upward trend should continue as the price fluctuates between the resistance and support. Eventually, a breakout from this bullish pattern is likely to occur.
Looking Out For a Reversal
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.
On Mar 9, the price made a low of $0.314. Lower lows followed until Mar 12.
Similarly, the MACD made the first low on Mar 19. Since then, it has made subsequently higher lows.
This is called bullish divergence and often precedes price increases. It is especially effective if bullish divergence occurs in a bullish pattern. This is the case with XRP’s ascending triangle.
While the divergence is only present in one indicator and is not very significant in value, it gains validity combined with the creation of a bullish pattern. Thus, it is likely that the price will eventually break out of the ascending triangle and that prices will increase.
To better determine when the upward movement might begin, we analyzed the price of XRP on Binance is analyzed at 15-minute intervals from Mar 13 to Mar 14.
The price made a high of $0.332 on Mar 13. It has made lower highs since. Tracing these highs gives us the descending resistance line. The price made a low of $0.318 on Mar 13. It has made lower lows since. Tracing these lows gives us the descending support line.
The support and resistance lines combine to create a descending wedge, which is a bullish pattern, further confirming our projection of likely price increases in the near future.
Furthermore, we can see that the price is very close to a point of convergence between the resistance and support lines, making a breakout or breakdown inevitable.
Using findings from the previous section and the creation of the wedge in the short-term, we believe that the potential breakout will occur today.
Resistance and Support
The price of XRP on Binance is analyzed at two-hour intervals from Feb 25 to Mar 14 to better visualize future possible resistance and support levels.
There are two visible resistance areas, near $0.33 and $0.345 respectively. This means that in the case of a breakout, they would provide likely reversal areas. This was visible in yesterday’s breakout, since the price reached a high of $0.3328 before ultimately breaking down.
The closest support area is found near $0.304. If a breakdown occurs, this is a likely reversal area. According to our analysis, it is not likely that the price reaches this area.
Summary of Analysis
Based on this analysis, the price of XRP is likely to break out of the short-term descending wedge and eventually from the ascending triangle.
If price breaks out from the wedge, the prediction will be partially validated, while if it continues upward to touch the resistance line at $0.326, it will be fully validated.
When do you think that the price of XRP will break out? 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.