Hi friends hope you are doing well and welcome to the new update on Ripple. Today we will have the detailed technical analysis on XRP with USD pair and at the end of this article I would like to show you a very big bullish harmonic pattern that the XRP has formed with Bitcoin pair.
Up channel , moon phases and EMAs:
Since after the strong there is rally of March 2020 the price action of XRP has started the formation of an up channel. Even though the Ripple is not showing as that much bullish move like the other top altcoins are showing, but it was moving within this channel above the exponential moving averages EMA 10 and 20 very well. After 11th May the price action broke down the exponential moving averages then we can see a bear cross between the exponential moving averages and finally the price action also broke down the channel.
I've also placed the moon phase indicator on this chart. On the up side you can watch the full moon and on the downside you can see the dark moon. The distance between one moon to another moon is called synodic cycle and that is 29.5 days long. The recent full moon was appeared below the previous full moon and it was below the resistance of the channel. And the most recent dark moon was appeared below the previous dark moon and that was at very big distance below the support of the channel. That was very clear indication that the price action may move down up to the next recent dark moon and finally the price action followed the signals of moon phases indicator and at this time after breaking down the channel support it is moving down towards the dark moon.
RSI and Stochastic pulled the price action down:
On the same daily chart if we watch the movement of the price action then it was almost sideways but if we watch the relative strength index (RSI) then it was completely in downtrend since April 29 2020. On 3rd June the Stochastic oscillator also gave bear cross from the oversold zone that was another bearish signal. And now finally the price action has followed the signals and broke down the channel’s support:
Simple moving averages support is likely to be broken down:
On below chart I have placed simple moving averages with the time period of 25 50 100 and 200. After the bullish rally that was started in the mid of March 2020 the price action could not break out the 200 simple moving average even after making several attempts. Finally the price action moved down and broke down 50 and 25 simple moving averages. At this time the priceline of XRP is at the 100 simple moving average support. If it will be broken down then we will see a further downside rally.
Formation of down channel:
Now after breaking down the support of up channel the price action of Ripple has formed a down channel. Therefore the price action needs to break out this down channel as soon as possible otherwise if it will be moving in this channel for the long time then this channel will lead the price action towards very low price.
Head & Shoulder pattern:
On the other side on the same daily chart we can watch the Head and Shoulder pattern formation with the continuation. First pattern was completed in the middle of March and after that the second Head and Shoulder pattern was started. And now it has been completed. Even though if the price action has reached the neckline of the Head & Shoulder pattern then the pattern is completed, however there is still possibility that the price action may move more down like It did in the previous pattern.
Long term support and resistance levels:
If we observe the long-term support and resistance levels on the weekly chart then we have a very strong support at $0.175. And this support is never broken down since 2017.
On the upside we have a very strong resistance level at $0.31. This level has been working sometime as support and sometime as resistance very well since 2017. At this time It is working as very strong resistance as the price action is never able to break out this resistance level since after it was broken down in July 2019. Therefore this resistance is became a very powerful and key level resistance for the priceline. Once it will be broken out then the price action may start a very long term strong bullish rally.
XRP with BTC pair analysis:
Now let's switch to the XRPwith Bitcoin pair and here the price action of Ripple has formed a very positive bullish move as it has completed the formation of a very big bullish butterfly on the long-term weekly chart. At this time the price action is entered in the potential reversal zone of this bullish Butterfly and as per Fibonacci sequence it should be moved up from this level up to the Fibonacci projection between 0.382 to 0.786 level and this is the Fibonacci projection of A to D leg. As per bullish butterfly the buying and sell targets can be as below:
Buy between: 0.00002028 to 0.00001548 sats
Sell between: 0.00002400 to 0.00003300 sats
Conclusion:
Ripple is showing very weak moves with USD pair. Even it is turning more and more bearish. But if we watch its move against the Bitcoin pair then it has formed a very positive bullish harmonic pattern. And from this move we can get a clue that if the price action will turn bullish from the potential reversal zone of this harmonic pattern then definitely it will also turn bullish against the US dollar pair as well.
Up channel , moon phases and EMAs:
Since after the strong there is rally of March 2020 the price action of XRP has started the formation of an up channel. Even though the Ripple is not showing as that much bullish move like the other top altcoins are showing, but it was moving within this channel above the exponential moving averages EMA 10 and 20 very well. After 11th May the price action broke down the exponential moving averages then we can see a bear cross between the exponential moving averages and finally the price action also broke down the channel.
I've also placed the moon phase indicator on this chart. On the up side you can watch the full moon and on the downside you can see the dark moon. The distance between one moon to another moon is called synodic cycle and that is 29.5 days long. The recent full moon was appeared below the previous full moon and it was below the resistance of the channel. And the most recent dark moon was appeared below the previous dark moon and that was at very big distance below the support of the channel. That was very clear indication that the price action may move down up to the next recent dark moon and finally the price action followed the signals of moon phases indicator and at this time after breaking down the channel support it is moving down towards the dark moon.
RSI and Stochastic pulled the price action down:
On the same daily chart if we watch the movement of the price action then it was almost sideways but if we watch the relative strength index (RSI) then it was completely in downtrend since April 29 2020. On 3rd June the Stochastic oscillator also gave bear cross from the oversold zone that was another bearish signal. And now finally the price action has followed the signals and broke down the channel’s support:
Simple moving averages support is likely to be broken down:
On below chart I have placed simple moving averages with the time period of 25 50 100 and 200. After the bullish rally that was started in the mid of March 2020 the price action could not break out the 200 simple moving average even after making several attempts. Finally the price action moved down and broke down 50 and 25 simple moving averages. At this time the priceline of XRP is at the 100 simple moving average support. If it will be broken down then we will see a further downside rally.
Formation of down channel:
Now after breaking down the support of up channel the price action of Ripple has formed a down channel. Therefore the price action needs to break out this down channel as soon as possible otherwise if it will be moving in this channel for the long time then this channel will lead the price action towards very low price.
Head & Shoulder pattern:
On the other side on the same daily chart we can watch the Head and Shoulder pattern formation with the continuation. First pattern was completed in the middle of March and after that the second Head and Shoulder pattern was started. And now it has been completed. Even though if the price action has reached the neckline of the Head & Shoulder pattern then the pattern is completed, however there is still possibility that the price action may move more down like It did in the previous pattern.
Long term support and resistance levels:
If we observe the long-term support and resistance levels on the weekly chart then we have a very strong support at $0.175. And this support is never broken down since 2017.
On the upside we have a very strong resistance level at $0.31. This level has been working sometime as support and sometime as resistance very well since 2017. At this time It is working as very strong resistance as the price action is never able to break out this resistance level since after it was broken down in July 2019. Therefore this resistance is became a very powerful and key level resistance for the priceline. Once it will be broken out then the price action may start a very long term strong bullish rally.
XRP with BTC pair analysis:
Now let's switch to the XRPwith Bitcoin pair and here the price action of Ripple has formed a very positive bullish move as it has completed the formation of a very big bullish butterfly on the long-term weekly chart. At this time the price action is entered in the potential reversal zone of this bullish Butterfly and as per Fibonacci sequence it should be moved up from this level up to the Fibonacci projection between 0.382 to 0.786 level and this is the Fibonacci projection of A to D leg. As per bullish butterfly the buying and sell targets can be as below:
Buy between: 0.00002028 to 0.00001548 sats
Sell between: 0.00002400 to 0.00003300 sats
Conclusion:
Ripple is showing very weak moves with USD pair. Even it is turning more and more bearish. But if we watch its move against the Bitcoin pair then it has formed a very positive bullish harmonic pattern. And from this move we can get a clue that if the price action will turn bullish from the potential reversal zone of this harmonic pattern then definitely it will also turn bullish against the US dollar pair as well.
