Ripple’s XRP price bounced on August 7 but failed to sustain its increase. The drop on August 17 invalidated a bullish XRP count that would have taken the price to $1.
If the XRP price does break down from the current pattern, it can fall by another 28% and reach the $0.35 horizontal support area.
XRP Price Invalidates Bullish Count
The technical analysis from the daily time frame gives a bearish outlook for XRP.
The primary reason behind this analysis stems from the wave count and price action. Technical analysts use the Elliott Wave theory to determine the likely direction of a trend by examining repeated, long-term price patterns and investor sentiment.
Prior to this week’s decrease, the most probable scenario suggested that the value of XRP is approaching the bottom point of the fourth wave within a five-wave upward movement (white).
This became likely after the XRP price bounced at the previous ascending parallel channel (green icon).
However, the ensuing decrease has invalidated the possibility. The XRP price fell below the invalidation level at $0.56 yesterday (red line) and decreased to the channel’s support line.
A breakdown from the channel can cause another 28% drop that takes the price to the $0.35 horizontal support area.
Author: Valdrin Tahiri
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