Ripple’s price, after overcoming several years of resistance, is now in the range that in order to continue its uptrend, it must turn the resistance to support. Meanwhile, many analysts believe that the airdrop of Flare tokens could spark the leap.
To Report The Coin Telegraph experienced a dramatic rise in Ripple prices as the bitcoin price rose, which attracted a lot of attention. According to many analysts, the arrival of large-scale traders and Wall Street companies has pushed up the price of bitcoin, while breaking several years of Ripple price resistance has accelerated the jump of this digital currency.
Ripple is scheduled to launch Airplane Flare network tokens next week (December 12), but despite the release of these tokens, the Ripple price is still trading below $ 1.
The main question is whether the recent fluctuations are due to “buying when rumored and selling when the main news” or should we expect another jump in prices?
The first peak above January 2018
The Ripple / Dollar currency pair has performed well over the past few weeks. During this period, the price of Ripple climbed from $ 0.22 to a peak of $ 0.88. This ascent had a similar trend to previous Ripple trends, in which we see a big jump and then sharp fluctuations.
It is worth noting that the recent jump caused the multi-year downtrend of Ripple to break. As shown in the graphs, this trend is broken and higher peaks are recorded. This is the first time since January 2018 and the beginning of the downtrend that we have seen higher peaks on the Ripple chart.
We saw a similar rally in August. The rally eventually pushed the Ripple from $ 0.16 to $ 0.33. It was then that Ripple adjusted to the previous resistance level of $ 0.22. The move caused the resistance area to turn into a support area and then jump to $ 0.8. It is worth noting that last month, the price of Ripple in the Coin Bass exchange went up to $ 0.9.
The fall is near
Fluctuations before large ripple jumps usually carry signals of this trend. Most of the time, we see the beginning of the correction process after such mutations. The chart above shows the previous 4 ripple jumps, which are not unlike the recent jumps.
Extensive mutations of this kind usually occur after long periods of correction. These courses often last from a few weeks to a few months and prepare the space for climbing.
Since more ascents generally require such improvements, it can be said that the existence of these courses is necessary to conquer higher levels, and they can be considered as positive signs. Most of the time, unexpected and sharp price increases climb to the previous resistance area and eventually change the support area to a resistance (ascending type).
Significant price levels
Daily timeframes show that some price levels are more important than others. These points have been created due to the historical fluctuations of Ripple price. Both levels marked on the diagram appear to be previous resistors.
The first area is the $ 0.45 level that we saw last week. At that time, the price of Bitcoin had been adjusted to $ 16,200. After reaching $ 0.45, we saw support turn into resistance.
These fluctuations emphasize the high correlation of digital currencies. As long as the price of bitcoin is relatively stable, market coins can continue to rise. However, as soon as the bitcoin reform process begins, the altcoins follow a similar process, and their correction is usually more severe than that of bitcoin.
If Bitcoin starts a more severe correction than usual, the next area to look forward to is the $ 0.32 level. This area has been a resistance area for more than a year, so it is very likely to become a support area.
Reaching both areas is likely to be bullish for the Ripple price. Of course, such a correction would be very painful for people who bought it for $ 0.7 (or more); Therefore, if the Ripple price stabilizes above $ 0.45 or $ 0.32, we will see a higher floor.
The chart above is an overview of the market structure and shows that the recent price pump has reached its first peak since 2018.
After a higher peak, the market should record a higher floor to say that the trend will continue. If any of these areas of resistance become supportive, the Ripple price will be ready to experience another jump. If we see a higher peak, $ 1 will be the next target. After $ 1, the way opens to reach $ 1.5.