XRP’s fractals indicate short-term pump to $0.21; long-term future looks bleak
With XRP dipping below $0.20, it has been a tough time for bag holders to bear as this is the second time XRP has dipped below the $0.20 point in a month. Even as Ripple, the company closely affiliated with XRP, makes headway into the payment industry, the price of XRP seems to facing troubled waters. As XRP sunk to $0.19 on December 20, Ripple announced that it had raised $200 million in series C funding to boost XRP adoption.
Although the near future looks bleak for XRP, the short-term prospect looks bullish, no matter how small. XRP has been known to exhibit repeating patterns throughout its lifetime. The 4-hour chart of XRP showed the formation of fractal triangles, indicating a bullish breakout in the imminent future.
The triangles are characterized by a sharp decline followed by consolidation of lower highs and higher lows meeting towards a point and breaking out. Over the course of 4 months, these patterns have formed 5 times, including the one that will break out soon.
Confirming this move is the VPVR indicator which showed price-volume resistance only at $0.21 level with a lack of price-volume action in between.
The daily chart showed worsening conditions for XRP with the gap between the 50 and the 200-day moving average increasing without a stop in sight.
Further selling pressure would take XRP to historic lows of $0.13, the likes of which have not been witnessed since before the start of the 2017 bull run. If this scenario manifests itself, it would be an extremely bearish case for the XRP’s bullish bag hodlers.
Short-term prospect of XRP looks bullish, with the formation of a price-volume gap allowing the price to ascend higher. Supporting this is the moving average which has created a space for XRP to ascend to $0.21 at the very least.
Long-term view of XRP looks bleak, as the price has tested the $0.17-$0.18 support twice within a month, indicating weakening support. The breakdown of which could literally spell disaster as XRP will revisit the 2017 lows of $0.13.
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