close icon

Ripple’s Rally Still Has Room to Run

Ripple, the only major cryptocurrency that is centralized, briefly became the second largest after Bitcoin, after its price rose from below 20 cents a coin on December 8th, 2017, to over $3.31 by January 4th, 2018. As of this writing, it has been surpassed by Ethereum again, but it still maintains a total market capitalization near $100 billion, making Ripple’s co-founder and executive chairman, Chris Larsen, one of the richest men on the planet, at least on paper.

Good for him. However, what interests us as analysts and traders is where is XRPUSD going next. Are we going to see a new all-time high soon? Are bulls too tired already? The Elliott Wave analysis of Ripple’s 4-hour chart below should give us a hint.
ripple elliott wave analysis
The logarithmic chart above shows Ripple’s recent ascent from $0.19776 to $3.31700. The San Francisco-based company’s blockchain payment network already serves more than 100 financial institutions, but the price of XRP is still subject to the two basic emotions, which govern the prices of all kinds of assets – fear and greed. Fortunately, these two form repetitive and therefore recognizable patterns.

The price pattern Ripple has been drawing for almost a month looks very similar to a five-wave impulse. Furthermore, the impulsive structure of waves (1) and (3) is also clearly visible. The only problem is that the fifth wave, labeled (5), is still missing, which gives us a reason to expect more strength from now on while it develops.

Wave (5) is supposed to exceed the top of wave (3). On different exchanges, wave (3) climbed to $3.31700, $3.34989 and even $3.84, so it seems reasonable to expect wave (5) to reach the $4 mark. With Ripple currently hovering around $2.49, this means the virtual currency could add another 60% to its market cap.

On the other hand, once the top of wave (3) is taken out, traders should be careful, because according to the Elliott Wave principle, every impulse is followed by a three-wave correction in the opposite direction.

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Bitcoin Proves Traders Can Prepare without “Knowing”

The price of Bitcoin slightly breached the psychological level of $3500 yesterday and still has not been able to escape its gravity as of this writing. The current selloff brought back the memories of the time when BTCUSD fell to $3122 a month ago. And while in the markets everyone is an expert in retrospect,…

Read More »

Here is Why BTCUSD is Down 40% in Less than a Month

The price of Bitcoin is declining at an unprecedented speed. Less than a month ago, BTCUSD was hovering above $5500. Last week it fell to as low as $3210, prompting Peter Mallouk, chief investment officer at Creative Planning Inc., to call Bitcoin a “dead man walking”. However, the truth is it didn’t take a professional money manager…

Read More »

Bitcoin Was Going “to the Moon”… And Then It Wasn’t

What a difference a year can make. This time last year Bitcoin was thought to be going “to the moon” by a great majority of people. BTCUSD was approaching the $20 000 mark at the time and financial gurus, hedge fund managers, celebrities and small individual investors alike were rushing to join the bulls. Many…

Read More »

Bitcoin Selloff Crushes Bulls’ Faith in $6k Support

The last several months have been unusually quiet for the price of Bitcoin. The largest cryptocurrency first touched the support area near $6000 in February and has been testing it multiple times since. This support looked so strong for so long that traders and investors started believing BTCUSD was getting ready for the next major…

Read More »

Elliott Wave Ahead of Bitcoin ‘s Goldman-Inspired Crash

Bitcoin was trading above $7400 on Wednesday morning, following a recovery from as low as $5880. Crypto investors hoped the rally will continue, but they could not predict that just a few hours later Goldman Sachs will say it is abandoning its plans to establish a cryptocurrency trading desk, citing the ambiguous regulatory environment as…

Read More »

Bitcoin and BitMEX Trading Halt in Elliott Wave Context

Bitcoin shot up by over $400 in as little as 20 minutes today in a move some crypto experts attributed to a short squeeze during BitMEX’s scheduled maintenance. Unfortunately, BitMEX’s trading halt can explain the surge only in hindsight, which means even crypto experts did not expect it. For example, Don Le, CEO of ChainRock…

Read More »

Another Week, Another Bitcoin Bloodbath

Another week, another bloodbath for Bitcoin. The largest cryptocurrency climbed to $6815 on Monday, but the bulls quickly lost control and suffered a sharp plunge to $6072 four days later on Thursday. And while bullish predictions by crypto “experts” still call for $60 000 by the end of the year or $280 000 by 2023,…

Read More »

More analyses