The last mile has been covered by Ripple, which plunged below $0.326 in its first 48 hours and then surged by 16%. Although everything looks positive and bullish, the $0.381 resistance is still a problem for XRP. If it fails to overcome that, it could signal a correction.
A candlestick close below $0.381 could defy the bearish outlook on XRP. As the Ripple price ricocheted from a support zone it showed immense strength, which in turn triggered a bullish streak over the next 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.
Within 48 hours, XRP pulls off 16% surge
Price of Ripple fell below the trendline, which means that buyers have reacted to it. Ripple pulled around despite soaking $0.326. Evidently, this caused a 16% increase in just 48 hours.
The XRP price could rise above $0.381 to serve as support or retrace back towards the $0.340 area.
A retracement will be more likely if BTC prices make a U-turn. This is based on current market sentiment. The $0.340 support level can be reached by the XRP price. The Ripple price can plunge to $0.326 if it breaches the resistance/barrier zone.
If Ripple prices form a daily candlestick above o$0.381 then the bearish confluence will be invalidated. This development could lead to a XRP price spike of $0.439.
Can XRP be used to circumvent the Bearish Divergence pattern?
Ripple currently shows a bearish divergence formation that should be considered seriously. If the XRP currency price plunges, or if it can rise to bypass the invalidation level at $0.48, then this is the only way around divergence.
On July 26, XRP prices were skewed from a trend line dating back to April last year. The announcement of a target price of $0.24 was made based upon Elliot Wave and Fibonacci projections.
The Ripple price reversed on July 27th with a surge in volume, and an extremely bullish candle. Further, traders are encouraged to stay focused on bullish targets by forming a 3-day morning Star pattern.
The XRP price could rise to $2, or even $10 in a single day. It is risky to be too confident about this right now.
Market cap of XRP is $17.9B on the daily chart. Source: TradingView.com| Source: TradingView.com Featured Image from Medium. Chart from TradingView.com
