Ripple (XRP) has gone the last mile after hitting a low of $0.326 and up 16% over the past 48 hours. While everything looks green and bullish, XRP is still facing resistance at $0.381, and if the coin fails to shoot up, it means that a correction is imminent.
A candlestick close below $0.381 could end XRP’s bearish outlook. Ripple price showed huge strength as it broke out of a support area, which then triggered a bullish streak seen over the past two days.
While it looked extremely bullish as it was able to maintain its momentum at $0.37, investors cannot be overconfident as the recent rally could lead to a retracement or extension.
XRP Remains 16% Rise in 48 Hours
Ripple price was able to break just below the trend line, which indicates that the buying pressure has stopped. Still, Ripple was able to pull it around after soaking in at $0.326. This markedly increased by 16% in 48 hours.
XRP price can either move above $0.381 and form a support line or possibly retrace and retest the $0.340 area.
Looking at the current market sentiment, a retracement is more likely to happen if BTC price goes for a U-turn. In fact, XRP price may always revisit the $0.340 support area. Now, if there is a breach of the barrier or resistance area, ripple price could decline towards the $0.326 level.
However, if ripple price forms a daily candlestick above o$0.381, it invalidates the bearish confluence. With this development, the price of XRP is likely to rise to $0.439.
Can XRP turn around a bearish divergence pattern?
Ripple is currently drawing a bearish divergence formation which should be taken seriously. The only way around the divergence is a drop in XRP price or if XRP price can successfully rise and bypass the invalidation point seen at the $0.48 line.
As recently as July 26 a warning was issued as the price of XRP slid from the trend line of April of last year. In fact, a target of $0.24 was announced which is based on Fibonacci and Elliott wave projections.
On July 27, Ripple price was seen reversing with an increase in volume and an extremely bullish candle. Furthermore, a 3-day morning star pattern has formed which encourages traders to stick to the bullish target.
The price of XRP could go as high as $2 or even $10 in a day. However, right now, being overconfident about it can be extremely risky in terms of profit.
XRP total market cap at $17.9 billion on the daily chart | Source: TradingView.com Featured image from Medium, chart from TradingView.com