Ripple (XRP) has walked the last mile after it waded lows at $0.326 and surged by 16% in the last 48 hours. While everything is looking green and bullish, XRP is still faced with the $0.381 resistance, and if the coin fails to shoot over that means a correction is looming.
A candlestick close that goes under $0.381 can debunk the bearish outlook for XRP. Ripple price showed colossal strength as it ricocheted off a support zone that hereinafter triggered a bullish streak seen in the past two days.
While it was looking extremely bullish as it was able to sustain its momentum at $0.37, investors can’t be overconfident as the recent rally could lead to a retracement or an extension.
XRP Pulls Off 16% Surge In 48 Hours
Ripple price was able to puncture right below the trend line which indicates buying pressure has paused. Even so, Ripple was able to pull around after soaking it up at $0.326. This evidently stirred up a 16% surge in a little over 48 hours.
XRP price may either go above $0.381 and make that as a support line or possibly retrace and retest the $0.340 zone.
Looking at the current market sentiment, a retracement is more likely to happen if the BTC price goes for a u-turn. In effect, the XRP price can always fall back to the $0.340 support zone. Now, if the barrier or resistance zone is breached, the Ripple price may plunge to the $0.326 level.
However, in the event that Ripple price forms a daily candlestick that goes above o$0.381, then this invalidates the bearish confluence. With this development, the XRP price can spike towards $0.439.
Can XRP Go Around The Bearish Divergence Pattern?
Ripple is currently painting a bearish divergence formation which should be taken seriously. The only way to go around the divergence is for the XRP price to plunge or if the XRP price can successfully increase and bypass the invalidation point seen at the $0.48 line.
A warning was recently issued on July 26 as the XRP price was jilted from a trend line that dates back to April of last year. In effect, a $0.24 target was announced which is based on Fibonacci and Elliot Wave projections.
On July 27, the Ripple price was seen to go into reverse with an upsurge in volume and an extreme bullish candle. Moreover, a 3-day morning star pattern was formed which encourages traders to remain glued to bullish targets.
XRP price may go as high as $2 or even $10 one fine day. However, right now, being overconfident about this can be extremely risky profit-wise.
XRP total market cap at $17.9 billion on the daily chart | Source: TradingView.com Featured image from Medium, chart from TradingView.com
Go to Source
Author: Jet Encila