Crypto markets have had a bumpy start to the week, with Bitcoin recovering over the weekend most BTC pairs took a beating. After the market movements, Cardano (ADA) is sat poised in what has traditionally been a make or break region, while Ripple (XRP) looks like it could be close to finally getting a breakthrough with a possible Wyckoff accumulation period. If ADA can shake off any negativity, it can use this price region as a support zone and push on for $0.053, while XRP is in with a chance of finally seeing $0.37 once more.
Cardano Teetering on a Knife Edge
ADA has a bit of hoodoo voodoo with the $0.0511 – $0.0512 region, with it acting as both a support and resistance zone. In the past few days, we’ve seen ADA rise from $0.050 all the way up to this figure, followed up by crashing back down after touching it. Conversely, after making a break up to $0.05265, ADA then fell back down to $0.0512 and used this zone as a support level. Finally, ADA is back above this dreaded level, but what happens in the next few days will be critical to how ADA finishes the week.
If we can see a number of candles closing above the knife-edge support/resistance zone, we could see a new support level form around the $0.05154 level. This would form a new platform for ADA to rest on as it looks to head upwards for the rest of the week. On the other hand, if ADA falls right through this support level, we could see it pull back to the next support level at $0.050. If this is the case, ADA could stagnate for a couple of weeks, trapping bulls.
Ripple Forming Wyckoff Accumulation
XRP is another cryptocurrency that has taken a huge beating over the past few months, failing to hold onto any gains it has made. A large reason behind this is due to the fact that Ripple keeps selling off huge tranches of XRP to institutions, but it has promised to stop this – for now at least. This could bring analysis back in to play, as without the manipulation from Ripple the price will have a chance to adhere to market principles.
As it stands, XRP looks like it’s in Phase C of a Wyckoff Accumulation, bouncing off daily lows rather nicely. There are a few scenarios for XRP from this point, but all scenarios are looking positive. The first scenario we’re going to look at is XRP progressing on to Phase D by hitting the $0.29 mark as we roll into September. If this is the case, we could see XRP progress towards $0.36 before a small pullback. From there, Phase D could take us as high as $0.60 before dropping slightly and heading into Phase E.
Alternatively, if Phase C doesn’t end with a nice upwards trend, we could see it test the lows and put in a double bottom around the $0.24 mark. This would severely alter our Phase D targets, forcing Phase D to max out around the $0.50 mark – still a rather positive outlook for XRP hodlers right now.
Keep an Eye on the Charts
Both of these pairings carry a significant amount of risk, with huge downsides lurking should markets not push the cryptocurrencies upwards. Either way, if ADA and XRP slide down they present huge opportunities to buy in at a lower price and realize significant gains over the next few months.