The Ripple (XRP) rate fell sharply on April 19 after the price rebounded from an important resistance area
Despite today’s drop, however, wave analysis promises the project Ripple (XRP) token will bottom out soon and potentially reverse.
Will the bulls be able to resuscitate the bullish structure?
Ripple faces resistance
According to a daily chart technical analysis, on March 21 XRP made a bullish break of the descending resistance line and has been rising ever since..
This bullish breakout suggested that the previous correction had already ended.
As a result, the price updated to a high of $0.585 on March 29.
At first, XRP may have appeared to have broken through resistance at $0.530. However, then the price formed a long upper wick and fell.
Such wicks are considered a sign of price weakness.
They show that the buyers failed to consolidate the growth and instead the sellers came into play.
A similar wick from April 14 (red icon) supports this probability.
Thus, the area of $0.530 has once again taken on the role of resistance.
In addition, the market is now forming a bearish takeover candle, which neutralizes all the growth of the previous day. This is another bearish signal for Ripple.
XRP: Is a Recovery Possible
In the meantime, wave analysis of the shorter 6-hour chart offers a bullish outlook. According to its results, the price is now in wave 4 of the five-wave bullish structure (white).
This is a positive signal for XRP. It promises a potential break-through of the resistance area of $0.525 and reaching the level of $0.650.
Price dynamics within the 4th wave will determine further trend direction.
At the moment the most probable scenario for the completion of the corrective wave is a bounce of the price from the Fibo level of 0.5 of correction.
If his prediction materializes, XRP could rise to resistance at $0.650. Here is the horizontal resistance and also passes the Fibo level of 1.61 of wave 4 (black).
This convergence of resistances makes this area a likely level for top formation.
If the price consumes the high of wave 1 at $0.433 (red line), it will cancel the bullish scenario and may cause XRP to fall to the horizontal support area of $0.37.