Ripple Price Analysis: The 0.1600 support could be more important than you think
- Ripple is trading 6.64% higher on Monday as crypto sentiment improves.
- There is a bearish Elliott Wave set up in the making but it is not confirmed yet.
XRP/USD 1-hour chart
Ripple is looking pretty bullish on the chart but if you dig deeper you may find that the patterns could be turning bearish. More recently the price has made a lower high lower low pattern. Looking closer at the chart the market might be making a new wave pattern to the downside. The wave 1 and 2 has been confirmed by the price stopping at the 61.8% Fibonacci extension. If this is indeed a new wave pattern then 0.1600 would need to be broken to the downside.
This move could confirm a 3rd wave to the downside. The 3rd wave is traditionally the longest which mean there could be an extended downside move. Of course, this pattern could be invalidated if the previous wave high gets taken out (0.1806).
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
