XRP has now formed a Lower High in its recovery effort, where we chart it in a Triangle pattern to see whether the Bulls are still able to survive or not after forming this Lower High.
Now, based on data from Coin Market Cap (CMC), at the time of writing, XRP has a market capitalization of $66,006,557,650 and a daily trading volume of $10,134,713,432 which makes this crypto ranked 5th in market capitalization. And if we compare it to 2020, the market cap has experienced a very rapid rise as investor interest increased after Ripple, the company behind XRP, was found not to be in compliance with a US SEC lawsuit accusing them of selling tokens without a license as securities.
4 Hour Chart Technical
At the time of writing, XRP has recently fallen quite strongly from its Lower High reflecting a Bearish outlook that needs to be watched and analyzed more closely.
In our technical view, the bulls will be facing a crucial point in trend validation, where the key levels in this analysis will help us read the trend opportunities for XRP in the next few days.
Here I try to describe it in the 4-hour technical chart below:
Based on the picture above, the price is being dragged down from the Lower High level which is our Resistance level in this analysis, where the Bearish prospect is our main concern even though it still needs to be held, the Bullish structure is still there!
In my view, at this time frame, the price of XRP is in an Elliot Waves structure so a decline needs to be anticipated so that in this analysis, we have SR$1.35 and $1.62 levels, as well as the Support Area.
The SR level is our initial analysis point to measure whether bullish potential can be found here by looking at the price reaction when retesting one of them. And the Support Area, will be the last point of defense for Bullish hopes if the price continues to fall and retest it.
Daily Chart Technical:
Also, in the medium-term view, this Ripple token has formed a Lower High so I am trying to chart it in a Triangle pattern, to find a bounce point and also a trend opportunity if the price is able to break one of the lines.
In view of this analysis, the price has just fallen from the top line of the Triangle, so we should anticipate a further decline if the price is still not able to build a bullish momentum at the SR level on the 4-Hour chart, or in the area between the SR levels, which in the Multi-Day view , we can still expect bullish potential as long as the Triangle’s bottom line has not been broken down strongly and in large volatility.
And for the Bearish scheme, the price continues to fall strongly and penetrates the Support mapping on the 4-hour chart and also the Triangle’s bottom line, so further declines should be anticipated by investors.
And for the fundamental view, XRP’s recent strong decline was shaped by Take Profit action, which also happened to a number of Altcoins, although for the chance to recover or not, more attention is needed to see the existing sentiment.
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Author: Syofri Ardiyanto
Crypto Enthusiast and Investor