On March 4, 2019, the cryptocurrency formally known as Ripple reached a low of around $0.30. Since then, XRP’s price has enjoyed a gradual increase. Of course, there have been some sporadic fluctuations
Here’s a look at the prices between Mar 4 and Mar 19:
In our Mar 18, XRP (XRP) analysis, we predicted that price increases would lead to a break out above resistance. At the time of writing, the upward move has not yet materialized. Price has traded close to the same level, but we did not predict the price increase within a 24 hour period.
Based on today’s analysis, we still believe that XRP will eventually initiate another upward move and break out above resistance.
Key Highlights For March 19
- The price of XRP has been on an uptrend since Mar 4.
- The price is trading inside a medium-term ascending triangle.
- There is bullish divergence developing in the RSI and the MACD.
- 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 19.
The price reached a low of $0.304 on Mar 4. Since then, several market cycles have been completed. However, every low has been higher than the preceding one. Tracing them gives us an 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.
The price of XRP has been increasing at the same rate as predicted by the support line since Mar 4.
A breakdown below the support line such as the wick lows of $0.306 and $0.307 on Mar 8 and Mar 14 respectively are considered insignificant since they were not succeeded by continuous price decreases.
It is likely that the price will continue to increase following this line. However, the support line alone is not sufficient in estimating when or if a breakout will occur.
The price reached a high of $0.328 on Mar 5. At the time of writing, this price has been reached three 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 line such as the wick high of $0.3328 on Mar 13 and $0.3333 on Mar 15 can be considered insignificant unless they are succeeded by sustained movement above the line—which they were not.
The resistance and support lines create an ascending triangle. This is a bullish pattern that suggests future price increases. The use of the triangle pattern better predicts price fluctuations than support or resistance lines alone.
Price is currently at the support line of the triangle.
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.
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.
The price reached a low of $0.318 on Mar 18. It continued to decrease throughout the day.
Similarly, the RSI and the MACD made the first low on Mar 18; however, instead of making another lower low, they proceeded to increase. This is known as bullish divergence and often precedes price increases.
It is especially effective if it occurs in a bullish pattern. This is the case with XRP since the bullish divergence has occurred close to the support line of the bullish ascending triangle.
Using this indicator, it is likely that the price will initiate another short-term upward move and head for the resistance line.
Resistance and Support
The price of XRP on Binance is analyzed at two-hour intervals from Feb 20 to Mar 18 to better visualize future possible resistance and support levels.
There are two visible resistance areas, near $0.329 and $0.345 respectively. This means that in the case of a breakout, they would provide likely reversal areas. This was visible in the breakout of Mar 13 and Mar 15, since the price reached a high of $0.3328 and $0.3333 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 soon.
Summary of Analysis
Based on this analysis, the price of XRP is likely to initiate a short-term upward move that could take XRP to or above the horizontal line.
If the price reaches the horizontal line, the prediction will be partially validated. If it breaks out from the triangle, 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.