Ripple Price Analysis: XRP Price Reaches New Year’s Low

August 16, 2019 at 4:00 PM | By Jit Sutradhar Markets

Is the XRP track facing icy times? In today’s Ripple Course Analysis, I’d like to discuss with you a scenario in which the XRP price moves into a consolidation phase over the next few months and moves within a clearly defined trading range. To break this and the ongoing downward trend, according to this theory, it requires a fundamental event – the bitcoin halving.

Attention: None of the terms in this article are trade recommendations in any way. This and subsequent articles are only for the purpose of sharing information with our readers. Neither CryptoMonday nor the author of this text is liable for losses incurred as a result of trading decisions of our readers. Dyor!

XRP price reaches a new year low

XRP investors have really little to laugh about. The year 2019 has been very successful for Ripple so far.

Ripple raised more than $ 400 million in the first six months of selling its XRP tokens . This represents a critical step in efforts to advance the adoption of xRapid .

xRapid is a ripple product designed for business customers, aimed directly at banks and financial institutions. Unlike other Ripple products such as xCurrent , xRapid uses XRP as its bridge currency.

One of the biggest successes in this respect is the integration of xRapid by the international payment service provider MoneyGram . However, the XRP share price continues to be unaffected by all these developments except for minor rashes and is continuing its downward trend that has persisted since the beginning of 2018. This is most likely due to the fact that XRP tokens are traded in large quantities by institutions only OTC and not on the spot market.

To make matters worse, Ripple itself regularly places XRP tokens in circulation, providing an ever-increasing supply, while demand can not seem to match. This is not a loose claim, but a fact that the market reflects based on the XRP rate.

With the break-through of the support line at $ 0.28-0.29, Ripples bridge currency hit a new low for the year on Wednesday at just under $ 0.24. But how deep is the XRP price likely to fall? And what does he need to climb new heights again?

XRP price could fall to $ 0.15

First of all, in our ripple course analysis, let us consider how low the XRP price is likely to fall.

At this point I would like to emphasize once again that this is just one of several possible scenarios. You have to decide for yourself whether you would interpret the relationships as well or not.

Let’s take a look at the weekly chart of the trading couple XRP / USD in order to derive a possible scenario for the XRP price.

XRP

Source: Tradingview

The chart clearly shows that the long-term uptrend line ( green ) has been sustainably broken since the beginning of 2019. This has since served as a drag line and was last tested unsuccessfully in late June before the long-term downtrend line ( red ) pushed the XRP down further.

On Wednesday this week, the XRP also lost an important support line ( top black line ) at just under $ 0.29.

The next serious support expects the XRP price just below $ 0.15 ( lower black line ). At the current price level of just under 0.26 US dollars, reaching this line would correspond to another price slump of 42 percent . But how does it continue from there?

XRP price threatens a longer sideways movement

As the chart shows, it was at 0.28-0.29 US dollars to a significant support line. Since August 2018, she has successfully saved the XRP course from deeper crashes. The chart analysis also teaches us that former support lines often turn into resistance when breaching.

Interestingly, this line has served as a significant resistance line in the past. From the end of May to mid-December 2017, the XRP course had to struggle with her vehemently, before, due to the general Crypto-Bullrun, the breakthrough came.

XRP Price Weekly Charts

Source: Tradingview

As we can see, it took 203 days, ie 6-7 months, for the XRP to break the resistance in mid-December 2017. If we keep in mind that things from the past are going to repeat itself and project this period into the future from today, that brings us very close to the expected Bitcoin Halving Event in June 2020.

A conceivable scenario would be that the XRP price will range between $ 0.15 and $ 0.29 over the next 6-7 months , before a rising bitcoin price in anticipation of an approaching bitcoin halving , radiates to the rest of the crypto market, giving the XRP track the power it needs to break its long-term downtrend.

Investors who are confident in the long-term success of XRP tokens will have the opportunity to repeatedly accumulate on the lower range XRP token to wait for significant countermovement.

For active traders, on the other hand, a clearly defined range offers the possibility of relatively simply multiplying the market price by trading the range movements in both directions. The outer lines are used as clear exit and entry points.

Of course, this is just a possible scenario. Each investor is responsible for evaluating it.

Image via Shutterstock

This article is translated by Google Translate from cryptomonday.de

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