XRP/USD: A breakout from the ascending structure started – more downside expected

XRP/USD: A breakout from the ascending structure started – more downside expected
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XRP/USD

From yesterday’s high at $0.32677 the price of Ripple has decreased by 5.23% to its lowest point today at $0.30968. Since the price started recovering and is currently sitting at $0.31670 slightly higher than yesterday’s lowest but still hasn’t come up to the levels from which the downfall was made even though it was in an upward trajectory.

On the hourly chart, you can see that the price of Ripple fell below its ascending support lines yesterday but managed to recover past the lower one today and is currently retesting it again from the upside as to establish support.

The prior horizontal support level now serves as resistance also and is why the price hasn’t got back inside the upper range. With the clear signs of struggle shown by the price action to keep up the upward momentum, I believe that this interaction would end up as a rejection which would lead the price back into a downward trajectory again.

As previously an ABC to the upside ended we are either seeing another correction to the downside or the start of a breakout on an impulsive decline, but in either way, I would expect to see more downside from here as the price of Ripple previously ended its corrective ascending channel.

If we are seeing the start of the impulsive decrease that would be the continuation of the initial drop we have seen on 24th of February when the price of Ripple fell by around 13% in one go.

The potential price target for the expected decrease would be around the horizontal support level from the current range which is at around $0.30564 but if we are seeing the start of a trend continuation the price set to go further down, potentially past the next horizontal support level at 0.29405.

Zooming out on to the 4-hour chart we can see that the price of Ripple has recovered the least among the other major cryptocurrencies which came close to the vicinity of their prior higher degree highs.

As the Minor WXY correction ended which I presumed  to be the Intermediate wave X an increase was expected to the upside, but instead an ascending structure developed which appeared to be corrective in nature and now that the price is starting to break below it I believe it could have been the 4th wave from the prolonged Minor WXY correction and was the second wave X.

If this is true, then the price of Ripple is now heading down potentially for a double bottom scenario as the 5th wave Z should develop around the $0.294 or slightly lower around the vicinity of the Intermediate W wave’s beginning point.

After the price establishes support I would be expecting another increase like we have seen until 24th of December last year and which already occurred on the charts of other major cryptos but for this, we are yet to see as I would be expecting a large impulsive five-wave increase to around the vicinity of the W wave’s ending point.

 

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