Ripple (XRP) Forms A Triple Top, Price Likely To Retest Previous Lows

Ripple (XRP) has slowed down after an aggressive climb last week. The price has now formed a triple top as seen on the XRP/USD 4H chart above. This is a very strong resistance which is unlikely to be breached at this point. Ripple (XRP) does not have the bullish momentum to break this resistance from its current levels. The price will have to retrace back to the support at $0.2738 before it can retest the resistance. However, the price action and most technical indicators suggest that Ripple (XRP) is unlikely to stop there and that the price may retest all the way down to retest previous lows. Currently, Ripple (XRP) has three important support levels. The first one is a weak support at $0.2738. The next one is relatively strong at $0.2706 but it can also be breached easily at this point considering the low trading volume. The last support at $0.2530 is a critical one and is unlikely to be breached. If this support is broken, Ripple (XRP) will be in a free fall and the price could fall all the way down to $0.18. Considering the low trading volume, it may not be advisable to enter a short position for Ripple (XRP) at this point, but the setup is highly in favor of the bears and the bulls are not expected to put up a fight as that would be no different than catching a falling knife. RSI for the above chart shows that there is room for a retest of the support at $0.2530. Wave trend analysis for XRP/USD shows that Ripple (XRP) is already on its way towards testing the $0.2530support and that the price can be expected to fall further in the days ahead. Daily trading volume for Ripple (XRP) has seen a slight improvement but it is still not enough to enter risky short term positions. The best course of action right now would be investing and accumulation as opposed to trading because the market is prone to heavy manipulation and wild movements at this point. Ripple (XRP) has been printing a similar pattern against Bitcoin (BTC). The chart above for XRP/BTC on the 4H time frame shows that Ripple (XRP) has also formed a triple top against Bitcoin (BTC). Just as with XRP/USD, Ripple (XRP) has three important supports to hold against Bitcoin (BTC). All technical indicators at this point also suggest a fall in XRP/BTC towards a retest of 40,744 satoshis level. This is a very strong support and is unlikely to be breached. As long as Bitcoin (BTC) remains vulnerable, Ripple (XRP) may not be expected to make any moves of its own. As both these charts show, Ripple (XRP) is now following similar price action against both Bitcoin (BTC) and the US Dollar (USD). Ripple (XRP) may have already found a bottom but the market is still preparing for a trend reversal which is expected to occur by the end of September. The price at this point is consolidating before a long term shift in direction from bearish correction to a bullish reversal.