XRP continued its decline over the weekend. However, according to analysts, it has almost ended its downtrend. XLM Coin is moving sideways, but a breakout is possible soon. Both have formed descending triangles since the high of the year, according to analysts. This signals a corrective phase before the continuation of the bull trend. FXEmpire analysts analyse these two coins.
XRP Coin Elliot Wave analysis
XRP chart analysis reveals an Elliott Wave correction originating from the year high of $2.90 and emerging within a descending triangle. The token completed an impulsive wave (labelled 1-5) followed by a corrective structure. Currently, the price is trading within the descending triangle. It is also approaching key support levels that will determine the next price action. The ongoing corrective phase is forming a WXY pattern. Moreover, the wave Y is projected near the 0.618 Fibonacci retracement level of $1.90. The Relative Strength Index (RSI) is falling, signalling a weakening momentum. However, if the price respects the lower boundary of the triangle and the critical Fibonacci levels, a bullish bias is possible.
Resistance levels are around $2.20 (0.5 Fibonacci) and $2.28 (0.382 Fibonacci). Support is located around $ 1.90 (0.618 Fibonacci). It is possible that the descending triangle could trigger the next significant downside move. The hourly chart of XRP highlights the continuation of the corrective phase. A strong rebound is possible if the price holds above the green support zone around $1.90. Conversely, a break below this critical level would intensify selling pressure. This is likely to push XRP towards $1.64 (0.786 Fibonacci).
The RSI is suppressed, indicating limited bullish momentum unless there is a significant market catalyst. Scenarios suggest that a breakout from the descending triangle would push XRP to $2.20 and $2.28. Alternatively, if it fails to maintain the support of $ 1.90, it is possible to pull it to $ 1.64 or below.
XLM Coin Elliot Wave analysis
The 4-hour chart of XLM Coin shows a descending wedge formation following an impulsive Elliott Wave structure that peaked in wave (v) at $0.64 on 23 November. The correction is forming an ABCDE structure, signalling a consolidation phase within the wedge. On 20 December, the price fell as low as $0.31, which would signal the completion of the corrective structure. However, on the next rebound, the price remained below the descending resistance. It also left room for further corrective development. The price is approaching the lower boundary of the wedge, which is aligned with broader support levels around $0.33, signalling a critical decision point.
The Relative Strength Index (RSI) is maintaining a neutral stance, reflecting the waning momentum. If XLM Coin breaks above the wedge resistance, bullish targets include $0.40 and $0.45. However, failure to hold the support around $0.33 would result in a continued decline towards $0.30 and even $0.25. The correction is likely to end on 20 December. In other words, the consolidation since then is the first sign of the upcoming rise. However, the price failed to make a breakout, leaving room for another decline before a decisive move.
Scenarios suggest that a breakout in either direction is imminent due to the narrowing range of the wedge. A bullish breakout would trigger a test of key Fibonacci retracement levels. However, a bearish breakout would push previous support levels. Volume analysis points to low participation. Thus, it suggests that a strong breakout will need more buying or selling pressure.
The opinions and forecasts in the article are those of analysts and are not investment advice. As Kriptokoin.com, we strongly recommend that you do your own research before investing.
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