Ripple (XRP-USD) has had a difficult time for most of 2018, and this is reflected in the price that has stuck in a very narrow range well below its previous highs. However, positive news in terms of adoption hit the markets and stimulated a new cycle of optimistic purchases.
October 2018 kicked off with the Ripple Swell event, which saw former US president Bill Clinton as one of the guest speakers. This event, held in San Francisco, aims to exploit the recent gains seen since the launch of its xRapid product.
xRapid is a low-cost financial product from Ripple Labs designed to allow on-demand liquidity in transaction stations in emerging markets, which ultimately reduces the costs associated with credit transfers and remittances in these markets. xRapid has long been tested with remittance service providers and banks and Ripple has confirmed several existing partnerships with its product.
The price action from May 2018 to September 2018 formed an emerging wedge, which eventually found the resolution 2 weeks ago with strong performance in 3rd week of September. This bullish hike saw the price jump from $ 0.2312 to $ 0.7931, an increase of almost 243%. However, the profits that took shape pushed prices to $ 0.5714. The selloff continued in the last week of September, before a new round of purchases increased prices. This is what the chart looked like at the end of the week:
Weekly table XRP / USD: 28 September 2018
There are basically two key points to be removed from this chart:
- Ripple had come to a point where prices fell to a point of oversold or too cheap to be devalued. In fact, the prices were so cheap, they had fallen almost to the lows of 2017. The buyers saw these prices as a bargain and were able to create enough demand to cause the break from the fall wedge. At $ 0.7931, the price surge approached successive resistance levels that were seen on the weekly chart in April 2018. This prompted business to be considered, resulting in a retracement of almost 2/3 of the initial peak.
- The candle of the week that has just ended shows a brooch with features that tell a story about market sentiment. There is a lower long wick, indicating the initial continuation of the sales retracement of the previous week, followed by a rejection of the lows to push prices to current levels. This is indicative of an existence of bullish sentiment on XRP.
Now that the candle for the week has closed like a bar, what is the prospect on prices in the future?
Price action opened the week at the same price as last week's candle closure. The high price of the breakout spark for the week ending on 23 September remains the resistance area to be broken before significant upward price movements are observed.
Chart for XRP / USD: 1 October 2018
At this point, the business analysis must use the daily chart to get a clearer picture of what to expect. C & # 39; is a bullish rising banner, with the standard component of the model that currently encapsulates price action. The price is supported by the lower upward trend line in the pennant, as well as the 10 day EMA.
This pattern is expected to end up in a bullish price continuation up to the resistance of $ 0.80 if the daily candle breaks above the upper pennant trendline.
Business Scenario 2:
However, it is also possible that XRP bulls will lose steam and allow sellers to drive prices below the growing daily support trend line. This will cause prices to be reduced to one of the Fibonacci retracement points identified in the snapshot:
- $ 0.48 (Fibonacci retracement of 38.2%)
- $ 0.43 (50% Fibonacci retracement)
The price is expected to find support in each of the two retracement areas. This is because they are the only retracement points that have seen at least one previous test and a successful candle price support in the last 2 weeks.
The long-term, medium and short-term prospects of the XRP / USD pair are:
- Long-term – bullish (could change soon)
- Medium-term – bullish
- In the short term: from neutral to bullish
Note: this analysis was performed on a weekly chart. It takes a whole week to form a candle, so these moves may take several weeks. Entries should be made on graphs with shorter time interval as the daily chart.
Revelation: I / we have no positions in any of the above titles, but we can start a long position in XRP-USD in the next 72 hours.
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