Ripple (XRP/USD) is preparing for a bigger move. The technical picture suggest that, similarly to BTC, the XRP may break down in the following days.
On the fundamental side, the Ripple completed a huge transfer of 1 billion of XRP two days ago, currently worth around $295 million. The transaction was sent from one of the company’s escrow wallets to an unknown wallet.
Additionally, the cryptocurrency payment processor CoinGate, announced it has added XRP to its payment options for around 4,500 shops online.
Going back to the technical analysis, the price of the XRP is still in the consolidation phase.
The H4 chart suggests the price is currently in the descending wedge formation. The pattern is characterized by a contracting range in prices coupled with a downward trend in prices. It is usually regarded as a bullish structure, however, it often proves to be a continuation pattern i.e. in this case the continuation of the bearish trend.
The failed break out may add more weight to the “continuation pattern” option of the descending wedge formation. Moreover, the price has broken below the key trend line and it is moving towards the $0.2465, which is the 2018 low. Beforehand, the price will be supported with an additional layer of horizontal support - $0.2870.
On the upside, the XRP must move above the confluence of resistance - $0.3000 - consisting of the key trend line and the wedge resistance. In addition, both 100 and 200 moving averages will provide additional resistance to the bulls’ attempts to move higher.
Overall, much will depend on the BTC, as it is the world’s biggest digital currency and a market leader. In case the BTC breaks down, as we believe it might be the case, almost the entire cryptocurrency market may follow suit.
On the fundamental side, the Ripple completed a huge transfer of 1 billion of XRP two days ago, currently worth around $295 million. The transaction was sent from one of the company’s escrow wallets to an unknown wallet.
Additionally, the cryptocurrency payment processor CoinGate, announced it has added XRP to its payment options for around 4,500 shops online.
Going back to the technical analysis, the price of the XRP is still in the consolidation phase.
The H4 chart suggests the price is currently in the descending wedge formation. The pattern is characterized by a contracting range in prices coupled with a downward trend in prices. It is usually regarded as a bullish structure, however, it often proves to be a continuation pattern i.e. in this case the continuation of the bearish trend.
The failed break out may add more weight to the “continuation pattern” option of the descending wedge formation. Moreover, the price has broken below the key trend line and it is moving towards the $0.2465, which is the 2018 low. Beforehand, the price will be supported with an additional layer of horizontal support - $0.2870.
On the upside, the XRP must move above the confluence of resistance - $0.3000 - consisting of the key trend line and the wedge resistance. In addition, both 100 and 200 moving averages will provide additional resistance to the bulls’ attempts to move higher.
Overall, much will depend on the BTC, as it is the world’s biggest digital currency and a market leader. In case the BTC breaks down, as we believe it might be the case, almost the entire cryptocurrency market may follow suit.