- Summary:
- Ripple price is losing its upward momentum which has been building up. I expect the XRPUSD pair to drop and retest the previous low.
Ripple price has bounced back after bottoming at around 0.1100 two weeks ago. The price has recovered in sync with other cryptocurrencies and the overall stock market.
Another catalyst for the recovery is that the growth rate of new Coronavirus cases appear to be falling. According to the World Health Organization (WHO), new cases and deaths have declined in Italy and Spain.
Ripple is more exposed to the global issues than other cryptocurrencies. This is because its role is to power trade and reduce cross border charges. Therefore, a recovery in global trade could be a catalyst for Ripple.
Another catalyst is that Banco Santander, the giant Spanish bank, recently committed to extend its use of XRP to Mexico. The company uses One Pay FX, which is based on the XRP platform. The bank has been using it to expedite on international business in several countries like the UK, Spain, and Poland.
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Ripple Price Technical Analysis
Looking at the daily chart, the XRPUSD pair has been edging upwards, although the momentum appears to have faded. The upward trend started after the pair made a hammer candlestick pattern on March 13.
By drawing a Fibonacci Retracement line connecting the February 15 and March 13 swings, we see that the pair is trading slightly above the 78.6% Fibonacci Retracement level. Still, we see that the pair is in the fourth phase of the Elliot Wave pattern. This means that it is likely that the pair will decline further. This will likely happen if the pair moves below the Fibonacci level of 0.1600.