I know a lot of people are following my technical analysis. Unfortunately, in the last few weeks, some personal issues have not allowed me to do technical analysis on XRP/USD. We are currently going through a very difficult time. Most of the coins on Crypto Market have had very large declines in recent days. This bear market is still a normal phenomenon. After the enormous increases since the end of 2017, it was normal to follow a downward period. Bitcoin turned out to be a bubble when it reached 20,000 USD.
XRP/USD has also had huge increases, so this bearish period is normal. As you can see on the chart, a pattern head and shoulders was formed on the XRP/USD parity.
At the time I perform the technical analysis the XRP/USD price is 1.55 USD. As we can see on the chart the price had a bottom at $0.87 after which we had an aggressive recovery move to the current price. The downward trend line has been broken up, and the price seems to be strengthening at today’s levels. Can we be certain that the minimum point has been reached, and soon will we have a new trend up? At this point, we can not say that. It is possible that after touching the resistance zone R1-2,25 USD we have a new corrective wave. If the corrective wave stops above the previous minimum from S1-$0,87 it means we have a trend reversal pattern.
The resistance lines are: The support lines are:
R1 – 2,25usd S1 – 0,87usd
R2 – 3,2 usd S2 – 0,65usd
What can we expect in this week?
The probable move is upward to $2 or maximum up to $2.25 (R1). After we reach these values, I expect a corrective wave that ends above the previous minimum of S1-$0.87. It is possible that the corrective wave begins before reaching the values specified above. The MACD tool (chart 12 hours) gives us a buy signal.
What is the minimum point where we can fall, if the corrective wave is more aggressive than we expect? If S1-$0.87 is broken down I think $0.65 is the minimum point to which
XRP/USD can fall. The $0.65 area seems an area where the price could have a bottom. The $0.65 area is the area that had a consolidation period in the past.
The MACD tool (chart 12 hours) gives us a buy signal. The probable direction for the next period is drawn in yellow on the chart.