Ripple has been the biggest winner in July, increasing slightly over 100% in a matter of hours and leading the space into euphoric sentiment as a partial victory was made versus the Securities and Exchange Commission case.
The euphoria transferred to other coins, and we have seen some price spikes in July that have been notable since then. Since July 14, when the high price spike ended, XRP started decreasing and formed a downtrend at first slowly, but picked up the momentum at the start of the month.
Now with the latest crash, this downtrend was amplified, and we have seen the price coming back to the level from which it came up previously, whipping out all the prior gains. With the price decrease of 54% from its July high measured to today’s low, the question is – was this the end of the decline, and will Ripple recover?
In some of our previous analyses, we have pointed out that our primary expectation of the price of Ripple was further decline to the $0.4 zone and potentially even slightly further below.
According to this count, which is still standing since the price went in accordance with the projection, from June last year, we have seen the development of the second wave X from the complex WXYXZ correction. This means that the currently seen decline is wave Z.
This is also the ending wave of the higher degree WXYXZ that dates all the way back from the all-time high and forms a large descending triangle, with July’s high being the third interaction with its resistance level.
We have continuously stated that this pattern needs to be completed before we can see a major uptrend, contrary to some analysts anticipating a massive rise from July onward. A target of $0.37 was expected for the completion of this move, and now the price has come very close to it.
Zooming into the current 4-hour chart, we can see that the price made a downfall to our projected target and in the manner, we have anticipated – the price structure made an impulsive move of a lower degree.
If this descending move is the Z wave from the mentioned complex correction, the structure it needs to make is a lower degree ABC which it appears to be made. However, the last decline from August 10, which is wave five of an even lower degree, looks like it has one more push to the downside.
The price target for the completion of this descending move is around $0.37, which matches our previous target and is on the ascending trendline as support from the large triangle drawn from the all-time high.
Maybe the downfall ended as is, but there are still no positive signs. The RSI is signaling extreme oversold conditions, but bullish price action remains to be seen. Only after the completion of this descending move can we start to possibly expect a recovery.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.