Analysis
XRP eyes 10% – 18% surge next week after 7% drop
The price of XRP has been under duress for a long time now; dipping to drastic depths by the end of 2019. However, there seems to be some hope on the horizon as the price eyes an 18% surge to $0.2197. XRP’s rise to this point can happen from two levels; $0.198, or $0.183.
XRP’s 4 Hour chart – Triple Bottom Reversal
Source: XRP/USD on TradingView
XRP is in an accumulation zone with price, range-bound, and moving sideways; a feast for scalp traders. Based on the price and volume action, one can notice that the prior trend plays an important role in deciding the future breakout. The price tapped the support at $0.1838 thrice, forming a triple bottom pattern. Generally, this pattern is neutral and the breakout can only be confirmed after the breakout.
There are three ways in which this pattern could play out,
- A bounce from the 50-MA [0.1922] and breach of the resistance at $0.1985.
- Failure of the 50-MA, followed by a dip to lower support $0.1838 and a bounce breaching $0.1985.
- A massive bearish outcome where supports [$0.1922 & 0.1838] are both breached and a retracement to $0.1748.
The third outcome seems less likely as the higher time frame charts indicate a bounce from the previous low of $0.1748. However, among the first two scenarios, the price might take a while to evolve. Hence, it is hard to predict anything among the two. Moreover, supporting the first and the second scenario is the VPVR indicator as it indicates a clean getaway for the price if it breaches the $0.1985 resistance.
History Repeating Itself?
Source: XRP/USD on TradingView
XRP is merely repeating what transpired in October 2017, the same triple bottom followed by a huge surge. Might the same thing happen again? It could, but waiting for a breakout is the only true confirmation.
Conclusion
The 4hr chart showed optimism for the declining price of XRP. The target for the surge is $0.21 to $0.22, while there could be a pitstop at $0.20. An unlikely, yet plausible scenario is if the price breaches all the aforementioned supports, there could be a revisit to the $0.1748 mark.
