Here’s how the final fall into $.30 could look like for the XRP price
- XRP price is declining in an impulsive fashion
- XRP price is displaying a decrease in volume
- Invalidation of the bearish thesis is a close above 0.44
XRP price could fall into the mid $0.30s once more before a powerful countertrend journey begins.
XRP price is following the technicals thus far
XRP price is showing reasons to believe in one more decline. Since the end of April, the bears have suppressed the Ripple price, producing extended impulse waves on intra-hour and daily time frames. The XRP price is screaming for a need for balance and proportion as the bulls have printed a bullish hammer with significant volume.
XRP price is currently trading at $0.41 as the bears are vertically pushing the price. The steep decline resonates with Wave 3 characteristics, which is expected from the technicals if the Ripple price will indeed push prices into the mid $0.30 levels. The volume has also significantly decreased compared to the sell-off at the beginning of May, a further confluence that the current decline may be the last wave down.
XRP/USDT 1-Hour Chart
Invalidation for the bearish thesis lies at $0.44. Because this decline could be the last wave within a macro flat correction, it is not recommended to short the XRP price. Intraday traders should be on the lookout for a truncated five-wave impulse to signal an ending to the downtrend. If the 0.44 is broken prematurely without the look of a five-wave impulse below, this thesis will be deemed invalid. The XRP price could rally towards 0.50, resulting in a 20% increase from the current Ripple price. If this bullish scenario occurs, the XRP price will need a revised count to issue future price projections.
XRP/USDT 1-Day Chart
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
