A similar picture of the price movement in comparison with other coins as well we may observe on XRP chart. So far, buyers of this coin are not aggressive and already for the second month are trying to break the price zone of $0.44-0.45. If, for example, compared to Bitcoin or Litecoin, then over the same period, these coins twice updated local highs.
To be more precise, there is another limit below which the price cannot be fixed as well. This is a mark of $0.378. Three times over two months, the upper and lower limits of the consolidation were subjected to attacks, but the price remains traded within the 20% range. The largest volume this week is fixed on Monday at the first attempt of buyers to break through $0.44-0.45:
After this attempt, sellers pushed the price below the critical zone and buyers have not yet tried to attack $0.44-0.45 again. Despite the fact that at the end of last week, buyers broke the trend line of the local channel of sellers, we did not see any increased or aggressive candles on the part of buyers. The price is peacefully traded near the upper limit of consolidation and with a high degree of certainty, we are waiting for a local fall.
Marginal positions of buyers updated their historical high and continue to grow. It all happens during the price stop:
Sellers are not so self-confident and their marginal positions continue to be in consolidation:
According to the wave analysis, we see two scenarios and start with the more probable. After the growth which ended on 15 May, the sellers started correction and at the moment, we see 3 entirely formed waves A, B, C. The current wave, in our opinion, is more like a correction of that price, with a high probability, will continue its movement in the triangle, in which the lower limit is a trend line and the upper is a price zone of $0.44-0.45:
If buyers keep $0.378 this time, then they will have all the trump cards to break the upper limit of the triangle and continue to grow to $0.56. The second alternative scenario is the breakdown of $0.44-0.45 now since the current growth is a new impulse wave of growth. However, we do not see facts yet to take this forecast seriously.
On a weekly timeframe, we see many pins that have emerged as a result of the reluctance of sellers to keep prices in a critical price zone:
It is another fact about the weakness of buyers at the moment, but until the week ends, there are several more days left, so more information will be on Monday and if the situation is identical, we expect a test of $0.378.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News