Technical Analysis of Ripple – XRP December 2018
The cryptocurrency market has been a bearish trend for two months now. TheXRPUSD, according to coinmarketcap.com is the second largest of the Altcoins by market capitalization, highlights the bearish sentiment in the cryptocurrency market. This month we’ll be carrying out a general technical analysis on theXRPUSD, starting from the monthly chart.
Monthly Chart of the XRP/USD
The above monthly chart started a bearish campaign from a bearish accumulation triggered on February 2018. A more recent breakdown of a bearishinside bar on November ignites a continuation of the bearish trend as the pairleaves behind a strong resistance level at 0.7101883, 0.5707947, and 0.5467200 respectively.
Weekly Chart of the XRP/USD
Making reference to the above XRPUSD weekly chart, buyers made an attempt to switch the course of the trend from bearish to bullish via a bullish accumulation pattern formed on February 12. Unfortunately, the support level established at 0.9450281 could not stand the test of time, as the level fails to a breakdown of bullish accumulation patternat the close of February 19. This price breakdown resulted in price making a48% bearish decline.
On May 7 another attempt to a bullish a recovery in the price of Ripple failed to a breakdown of bullish accumulation. This pattern was also formed in combination with a bearish accumulation on May 14, reinforcing the bearish pressure. Together both breakdown and bearish accumulation patterns offer a strong bearish outlook and consequently a 63%price drop of the XRP.
A bearish accumulation pattern was formed on May 25th, establishing a resistance level at 0.4986562 with price moving south by 46% compared to a 17% risk.
Following a bullish price thrust on September 17, cryptocurrency enthusiast had their hopes raised; only to have it dashed by a breakdown of bullish accumulation pattern on October 8.
A more recent breakdown of bearish accumulation pattern was triggered on November 19. This technical price pattern served as an early entry confirmation to a buildup of bearish hidden divergence of the MACD oscillator.
The mentioned price patterns left resistance levels as follows:
February 19 – 1.2520640;
May 7 – 0.9961339;
October 8 – 0.7978838;
November 19 – 0.5723452.
Price close above any of these levels will imply a change of trend.
Daily Chart of the XRP/USD
Let’s take to the daily chart for a clearer view and breakdown of the weekly chart. This breaks the weekly consecutive bars and offers short selling trades starting from a bearish accumulation pattern on November 20; with a strong resistant level at 0.5320708which resulted in a price drop of 35%.
This bearish accumulation pattern made the XRPUSD price chart pierce through the 65 periods moving average and later triggered another bearish accumulation pattern on 30th November, leading to divergence of 21% price drop.
4-HR Chart of the XRP/USD
The above 4hour chart started with a breakdown of bullish accumulation on November 24, offering an opportunity for a 5% low-risk shortsell trade that moves price by a 20% decline.
Following this bearish decline was a double accumulation pattern which gave an early confirmation for a golden cross of the MACDoscillator. This bullish move continued by setting price up for a breakout of bearish accumulation on November 28, with a support at 0.3436255. This mid-term bullish move ended up being a correction to the bearish trend as a bearish hidden divergence pattern gets confirmed by an opposite breakdown of bullish accumulation on 29 November. From this point forward, the XRPUSD continued to experience a breakdown of bullish accumulation on December 2.
Update of XRP/USD 4-HR Chart
After the 11% price drop triggered by the bearish accumulation pattern on December 6, price entered into a sideways market establishing support levels at 0.2918268 and 0.2894560 respectively. At the moment, the XRPUSD chart triggered 4-consecutive bearish accumulation patterns.
The XRPUSD at the point of publishing this post trades between the resistance and support levels of 0.3278282 and 0.3012564. Based on the current bearish trend, we have a bias toward the bearish direction. However, a price close outside of either of these levels or another high probability setup to come should decide the direction.