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We have seen the last few days with a less positive fact that has also influenced the XRP price. The price of bitcoin has declined and the support area of 6000 has been discontinued. In the technical analysis of October 31, 2018, I was saying that I expect the Bitcoin to reach 7500 usd. Typically, such a graphic formation ends up moving towards the top, but this is not the case.
Breaking the USD 6000 support keeps Bitcoin in a bear market. At the bottom we have a first support at 5000 usd. Unfortunately, this is only a psychological support offered by the 5000 round. Under this area, there is no technical support other than 2900 usd. If the psychological support of 5000 usd is broken, the fall of Bitcoin will be profound. The XRP / USD was influenced by Bitcoin and recorded a decline of up to $ 0.42. Subsequently, the XRP / USD recovered, rising towards the resistance R1 – 0.50 USD.
I would like to point out that the XRP / BTC and XRP / ETH pairs have recovered all losses and are currently at higher prices than before the fall. This means that many of those with BTC and ETH have bought XRPs. A reorganization of the portfolios took place these days. Probably many BTC and ETH owners have finally realized that XRP will have the greatest potential for profit in the future.
The resistance lines: Support lines:
R1 – 0.50 usd S1 – 0.36 usd
R2 – 0.60 usd S2 – 0.25 usd (bottom)
R3 – 1 usd (psychological)
What's happening on XRP / USD next week?
Considering the above, it is advisable to re-evaluate the TA position. For the first time I take into consideration the hypothesis of lowering Bitcoin under 4850 – 5000 usd. I did not say what will happen, but we must also take this possible scenario into account.
Bitcoin is still very weak and if next week it will not rise above 6000 USD and will keep above this price it is very likely to fall to 5000 USD. I have always considered 4850-5000 usd a fund area on Bitcoin. I mentioned in some technical analysis this summer. We will see if buyers will be interested in Bitcoin at the price of 5000 USD to make this area a turning point.
If Bitcoin drops to 5000 usd, XRP / USD will fall, test support S1 – 0.35 USD. As you can see on the diagram (drawn in blue) a symmetrical triangle has been formed. Nothing is clear when we have a symmetrical triangle on the graph.
It should be noted that on the chart, (yellow arrow) you can see that the candles on November 16th are actually an inverted Doji Star. These candles indicate that buyers were aggressive and could follow a move upwards. We'll see if this really happens. As you can see, the indications provided by the technical analysis are mixed, and it is impossible to predict a probable direction.
I am very curious about what will happen to the price of the XRP / BTC and XRP / ETH pairs, with a very good evolution in the last days.
