The long awaited event occurred earlier than we anticipated. I was saying in past technical analyzes, as in September, but more likely in October there will be a bull move on XRP/USD. We anticipate that this move on XRP/USD will take place due to a Bitcoin bull run. As early as XRP/USD had an independent bull run. The Bitcoin price stagnated these days, but indeed he is preparing for a bull run. I was saying that the Falling Wedge pattern is a bull pattern and the price will break up the descending trend line. This has happened over the past few days.
Against the background of very large buying volumes, XRP broke up the Falling Wedge pattern and also broke the three resistance areas. XRP/USD broke up, resistances from 0.37, 0.42 usd and 0.50 usd. The price reached a maximum of 0.78 USD, after which a corrective movement began. This break up of the downward trend signifies the end of the bear market and entry into the accumulation cycle (consolidation), followed by the bull market on XRP/USD.
The resistance lines: The support lines:
R1 – 1 usd (psychological) S1 – 0,42 usd
R2 – 1,2 usd S2 – 0,25 usd
However, it is very important that the correction that has started does not fall below the descending trend line. To consider the 100% exit from the bear market, the XRP/USD price should remain above the 0.42 usd. After the huge volumes traded in the last days and the magnitude of the up movement, I think the bottom was reached at 0.25 usd. In the following months, it is not forbidden for the price to fall temporarily to the 0.28 – 0.30 usd area, but it is quite unlikely that the price will fall below 0.25 usd. Keep this information for a good buy strategy.
The rapidity with which the price rose under the influence of FOMO shows us that traders have had a great hunger to make money after this bear market. Many traders have not looked at the price. Traders have jumped on the XRP train, no matter what price they bought.
What’s happening on XRP / USD next week?
At this point, the price seems to have a consolidation. As we said earlier, it is vital to have a lateral consolidation trend and not fall below 0.42 USD. The price went up too fast in three days, and if we do not have a consolidation period, we risk falling below 0.42 USD. If XRP/USD is above 0.42 usd, we will have a consolidation period, the price may rise above 0.80 $. The first resistance area on XRP/USD is at 1 usd. The second resistance area is 1.2 usd.
The buffer between 1 and 1.2 usd will be a strong resistance to price increases. This area is unlikely to be broken up from the first move. If the price reaches 1.2 usd, it is quite likely to have a corrective wave. This level of resistance will not be broken up from the first move, unless the purchase volumes are very high and FOMO will be at high levels. It will also count the amount of sales order placed at R1-1 usd and R2 -1.2 usd.