Ripple Trading: Technical Analysis of Ripple XRP

Technical Analysis of Ripple – XRP January 2019

Introduction

The hype and demand for cryptocurrency in 2017 rapidly lost its steam in 2018 as problems of scaling and increase in institutional investment did not come through as forecast by experts in the space. As most cryptocurrencies show a sharp price decline, Ripple, on the other hand, is one altcoin that has established strong support at 0.24653 and from the look of things, price action patterns indicate a recovery in the strength of the XRP.

You can also read the December 2018 Ripple Technical Analysis here.

Weekly Chart of the XRP/USD

Weekly Chart of the XRP/USD

The above weekly chart of the XRPUSD illustrates how Ripple managed to maintain a range bound formation in the face of the 2018 crypto winter. Starting from June 25, 2018, a resistance level was established at 0.49055 triggered by a bearish accumulation pattern resulting in a 46% price decline. A breakdown of bullish accumulation on July 30 ’18 fueled the bearish sentiment of speculators as the price came tumbling down.

After a sudden upward surge in the price of Ripple and setting up a bullish accumulation pattern, another breakdown of bullish accumulation was triggered on October 8 ’18 and November 19 ’18. These breakdown patterns showed rejection of bulls and a further increase in bearish pressure.

Around December and towards the last weeks of the year 2018, a breakout of bearish accumulation confirmed a possible takeover by the bulls, going forward into the year 2019.

Daily Chart of the XRP/USD

Daily Chart of the XRP/USD

Taking a look at the above daily chart, we notice a breakdown of hidden bearish accumulation pattern on December 3 ’18, bring the price of Ripple down by roughly 23%. A breakout of bearish accumulation on December 17 ’18 triggers a rapid demand for Ripple as the price climbed by 38.3%. On December 25, the 65 periods moving average served as resistance, preventing the pair from sustain higher heights. The formation of a bearish accumulation initialized a slowing of the pair and a price retracement of about 12%.

4-HR Chart of the XRP/USD

Technical Analysis of Ripple: 4-HR Chart of the XRP/USD

A confluence of signals between the daily charts bearish accumulation and a regular bearish divergence on the above 4hour chart put more confidence into an attempt to short sell the XRPUSD pair. This time frame presents early entry opportunity as the pair plummets by 6% after the breakdown of bullish accumulation on December 24 ’18 12:00. This leaves a bearish resistance pattern at 0.46664, another resistance level at 0.40614 from a breakdown of bullish accumulation on December 26 ’18 08:00.

2-HR Chart of the XRP/USD

Technical Analysis of Ripple: 2-HR Chart of the XRP/USD

The 2hour chart from the above snapshot starts with a bearish accumulation pattern on December 26 ’18, leading to a 14.7% gain for short sell trades. A breakdown of Bullish accumulation in combination with a bearish accumulation saw price crashing down by 8.5%. On December 28 and precisely at the 04:00 closing price, Ripple started a bullish campaign for a 13% price increase. Formation of hidden bearish divergence pattern hinted on a resumption of a bearish decent which lasted for a 5% price drop.

A breakout of bearish accumulation on the 2hourly chart recently shows bullish confidence and a probable increase in demand for Ripple.

Conclusion

The year 2019 already shows signs of a recovery in the value of cryptocurrencies, however, a breakdown below the bullish accumulation support of 0.33944 should nullify such hopes of an increase in demand. At the moment, we intend to stay on the sidelines and take profit from previous short positions on the pair and look out for future technical patterns, preferably breakout patterns on the 4hour and daily that supports the bullish campaign.

Read other Technical Analysis right here. Happy New Year!

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