Ripple (XRP) experienced losses today alongside major altcoins and Bitcoin. The German government’s Bitcoin transfers and Mt. Gox creditor repayments have heightened uncertainty, pressuring the market. Since March 11, XRP has been in a downtrend, reaching a fifteen-month low of $0.38 on Friday. This resulted in the loss of gains from earlier this year due to the broader cryptocurrency market correction.
Despite this decline, renowned crypto analyst Michael remains optimistic about Ripple’s future. In a recent analysis, he projected a bullish trajectory for Ripple. His chart, which is a detailed examination of XRP’s price movement against Tether (USDT) on Kraken, outlines a series of technical patterns and indicators suggesting a potential surge in XRP’s value.
Michael’s analysis hinges on the observation that XRP has been supported by a long-standing upward channel since July 2020. This channel, marked by parallel trend lines, has consistently provided a framework within which XRP’s price has oscillated. Michael believes this structure will continue to influence its future performance.
Central to Michael’s analysis is the application of Elliott Wave Theory, a popular technical analysis tool used to predict price movements by identifying recurring wave patterns. Michael identifies a series of impulsive and corrective waves, forming the basis of his bullish forecast.
Michael Forecasts Ripple Surge Ahead
In particular, Michael highlights the formation of a complex correction pattern labeled as wave (2). This pattern, a combination of corrective waves, appears to have been completed, setting the stage for the next impulsive wave (3). His projection indicates that this upcoming wave could propel XRP’s price to the $3 to $4 range, a significant increase from its current value.
Michael’s optimistic view is bolstered by XRP’s historical adherence to crucial Fibonacci retracement levels. Notably, the 0.618 retracement level, near $0.887, has proven pivotal as strong support. Moreover, extended Fibonacci levels, such as 1.414 ($2.18) and 1.618 ($2.75), hint at potential resistance zones, aligning with his target range of $3 to $4.
Volume analysis also plays a crucial role in Michael’s forecast. The volume profile on the chart, represented by horizontal bars, shows areas of high trading activity, which typically act as strong support or resistance zones. The analyst notes that the volume profile supports the upward channel, with significant buying interest observed at lower levels, reinforcing the bullish sentiment.
Additionally, Michael has utilized stochastic indicators and a relative strength index (RSI) to further validate his analysis. These momentum oscillators suggest that Ripple is currently in an accumulation phase, with bullish crossovers indicating potential upward momentum in the near term.
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