XRP expecting a 15% increase after Golden Cross

29 May, 2019 | Updated: 29 May, 2019
by Lourens Pepler
Price Analysis
XRP expecting a 15% increase after Golden Cross

Talk of a golden cross within Ripple's XRP token has its army running rampant in jubilation. After yesterday's macro take on XRP's price analysis, we will today be looking at smaller time frames to look for possible entries to secure a position for the bull run that’s on the way.

Highlights:

- XRP smaller time frame analysis.

- Possible entry before the run

- First target of $0.051

- Golden Cross on the daily

We will only be focusing on the 15min chart today since it will give us a better view of the structure and provide us with the best possible entry.

From the RSI we can tell that the impulse wave has completed since we had strong divergence that formed this past few days. We can see that price pushed higher, while momentum did not manage to make new highs on the RSI. With the impulse wave now complete, we are able to plot a Fib tool over it to see where this ABC correction will retrace to.

Using our Fib tool, we measure this impulse wave from its high to its low. This lays out possible retracement levels, as well as possible future extensions. First, we want to identify what price points will act as support to provide the entry. Usually, the golden zone for retracements is between 50% and 61% retracement levels. From the chart, we can see that this puts our entry box between a price of $0.42 and $0.40.

Altcoins has been pretty bullish recently, with some of the coins only retracing 50% after an impulsive move. If we assume the same action will occur for XRP, then our main support/entry price will be $0.42.

XRP/USD chart provided by Tradingview

Target after entry?


Using the Fib extension tool, we again measure from high to low, but this time we look for possible extensions, instead of retracements. The first target after an impulsive move is usually the 161% extension, which in XRP’s case is at a price on $0.51. Plotting a line on this level and zooming out to the daily, we can see the confluence with higher time frame resistance, adding more confidence in our targets.

XRP/USD chart provided by Tradingview

XRP/USD chart provided by Tradingview

While we are on the daily, we also spot the possibility of a Golden Cross. The golden cross appears when a short-term moving average (50EMA) crosses above its long-term moving average (200EMA). The last time XRP received a golden cross was in December of 2017, right before it moved from $0.22 all the way up to $3.2. If this Golden Cross manages to form in the next few days, then we can expect a very good future for XRP.

XRP/USD chart provided by Tradingview

XRP was a huge favorite in 2017 and the chart in 2019 is currently very bullish, but can we expect the same hype around it in 2019 and see the same type of gains? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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