Ripple (XRP) Technical Analysis #003 – Trading Within Triangle Against BTCJune 21, 2018
Ripple, the crypto giant that aims to compete with swift, has continued to find support at a major support area this week as prices trade hands at $0.05384, up 1.91% over the last 30 trading days, at the time of writing.
The entire crypto market has experienced a bearish trend throughout the past two months and Ripple is no exception as XRP has lost a total of 20% over the past 30 trading days.
The market is looking promising, however, if it manages to stay above the major Fibonacci Retracement level outlined below.
XRP/USD – LONG TERM – DAILY CHARTS
Looking at the chart above, we can see that Ripple has been struggling this year against the dollar. The crypto currency had experienced an extremely bullish run over the course of December when the market rose from a low of $0.1581 to a high of $3.5315 on the 4th of January 2018. This was an incredible 2000% price increase.
Naturally after such a bullish run prices will decline as XRP has fallen all the way to the .886 Fibonacci Retracement at $0.5410. This is a retracement of the bullish run experienced during December.
Price action has found significant support around this .886 Fibonacci Retracement area over the past week of trading. This is the lower boundary of where price action has been trading since the start of this year. If the bulls can maintain .886 Fibonacci Retracement, price action may be able to rebound toward the upper boundary of the range located at the .786 Fibonacci Retracement at a price of $0.8780.
Alternatively, if prices dip below $0.054, the nearest level of support is located at $0.4510, which is the low of the year experienced during the start of April, marked by the great line.
Let us analyse price action over the more recent term a little more closely.
XRP/USD – SHORT TERM – DAILY CHARTS
Looking at the charts a little closer, we can see that XRP had experienced a small price surge during April as prices rose from a low of $0.4512 to a high of $0.9939, a significant 120% price increase.
Since this high, price action has fallen all the way to the short term .886 Fibonacci Retracement level, marked in black, at a price of $0.5138. Price action has found significant support along this Fibonacci level over the past 6 trading days.
The market, over the past week, has been stuck within a range between the .886 Fibonacci Retracement at $0.5138 and the .786 Fibonacci Retracement at $0.5680. If the bulls can push price action above the upper boundary of this range then we may see another bullish run as price action can retest the highs of June once again around $0.70.
The 7 day EMA looks like it is changing direction as price action finds resistance trading in this area. If the 7 day EMA, blue line, can cross above the 21 day EMA, purple line, this would indicate that the bullish momentum within the market is increasing and that a trend reversal could be in play.
The RSI is trading well below the 50 handle, indicating that the bears are still in control within the market. However, if the RSI can break above 50, this would indicate that the bulls are beginning to establish momentum within the market.
Let us take a quick look to see how XRP has been performing against Bitcoin.
XRP/BTC – SHORT TERM – DAILY CHART
Analysing the XRP/BTC chart above, we can see that the market has largely been trading within the confines of a symmetrical triangle for the past two months and is quickly approaching the apex of the triangle. This could come as a good sign to the bulls as typically, symmetrical triangles usually resolve themselves to the upside.
We can see that XRP also experienced a bullish run in April against Bitcoin as price action rose from a low of 6918 SATS to a high of 11001 SATS, an increase of 60% in value. Since then price action has fallen and has found support at the .786 Fibonacci Retracement at 7784 SATS.
If price action breaks below the triangle then the nearest form of support is at 7794 SATS followed by 7386 SATS.
Alternatively, if the bulls can push price above 8000 SATS and eventually break above the triangle, the nearest level of significant resistance comes in at 9440 SATS which is the .382 Fibonacci Retracement.
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