Two weeks ago when we published our Ripple price forecast for 2019 the XRP token started a giant breakout. Not any other cryptocurrency in the top 20 has done something similar in recent months. Last week XRP started a second breakout when we wrote Ripple Is The New Bitcoin. However, two days later, it appeared that it was a ‘failed breakout’ which means that it fell back in its sideways channel. Today, we see Ripple testing support. Ripple from breakout to support in 2 weeks time, what to make out of this?
Ripple lost momentum in recent days. The October 1st announcement by Ripple that xRapid is now officially commercially available seems to be over.
The fact that Ripple is retracing is not concerning per se, for sure as it trades twice as high against its September lows. There is not any other cryptocurrency in the top 20 largest market cap that has a similar performance, from it even.
Ripple From Breakout To Support, But Which Price Levels To Watch Now
Ripple bulls would want the XRP token to trade above the 0.45 to 0.46 area though.
Why? Because it is the point where Ripple found support right after it broke out in September. Twice did the price fall back to 0.45, both on September 21st and 25th. Moreover, as seen on Ripple’s chart below, see the yellow circle, it was a major support area in the first week of April.
Though not annotated on the chart, but clearly visible, the 0.45 area was also strong support throughout July, before support made place for a breakdown in the first week of August.
Stated differently, we consider 0.45 a crucial area. If, and that’s a big IF, Ripple continues to trade above 0.45 it would be very bullish.
Remember, any support price level increases in importance if it acts on different occasions and in different patterns as support area.
Ripple from breakout to support, but is 0.45 the only support level? No, it is not. Another critical support level is 0.38. In other words if 0.45 cannot hold, it would be eyeing the 0.38 which is a major test of the bullish breakout.