Analysis: XRP reaches price of 0.57 dollars, but immediately starts to decline – BLOX

Ripple has played out the scenario we described last week. The currency rose from a key support, then reached a major resistance, and from there the currency started a decline. What can we expect now? Let’s look at the graphs.

How is XRP doing?

We’ll start this analysis with a look at the weekly chart. Here each candle represents 7 days, and this allows us to analyze the most important price levels in the long term. These are shown in the image below as gray zones, a blue zone and a blue line.

We have used the gray zones before. These are price levels that have often proven to be important in the past. Almost every time the coin arrived here, the price changed direction. This now appears to be the case again in the middle gray zone around a rate of $0.57.

This is where the coin ended up after finding support at the blue line that originates from the previous low. In our previous analysis we stated that the price should not fall below this, because then the upward trend – of successive higher lows – would be broken. This can be seen by the blue arcs. Fortunately, this trend remained intact and the currency was able to rise a few percent to the gray zone.

Here it was to be expected that the currency experienced resistance. The coin started a decline from here, and is currently between this blue line and the gray zone. Time will tell which direction XRP now chooses, because now the coin is in no man’s land.

What can the price do from here?

To analyze this better, also take a look at the 4-hour chart. Here each candle represents 4 hours, allowing us to see the price in more detail. This also makes the blue zone clearer. This could become a nice target if Ripple rises above the gray zone.

The question now is whether we will not descend further. If this is the case, then the blue line – where XRP found support last time – could provide support again this time. If this is not strong enough, a more negative scenario is conceivable, but we will come back to that at that time.

As I said, XRP can also make an attempt to rise above the gray zone again. This would be very positive, as it would regain a large price level. In that case, a greater increase is conceivable (towards the blue zone). So we will have to wait a little longer to say more about the price development. Therefore, keep a close eye on these price levels.