Ripple on the Brink of Breakout or Breakdown
The Ripple XRP price has gradually fallen since its yearly high of $0.95 in July.
The price broke out in November but could not sustain its upward movement and now trades close to support. Will it bounce or break down?
Ripple Trades Above Horizontal Support
The weekly time frame technical analysis shows that XRP has followed an ascending support line since May 2022.
While doing so, XRP broke out from an important horizontal area and reached a new yearly high in July. However, the XRP price failed to sustain its rapid upward movement and fell afterward, creating a higher low in August (green icon) and a steeper ascending support trend line.
Cryptocurrency trader JD noted the importance of this ascending support trend line, comparing it to that of the previous market cycle.
The price now trades above the horizontal support area.
The Relative Strength Index (RSI) serves as a momentum indicator for traders, aiding in assessing whether a market is overbought or oversold and guiding decisions on asset accumulation or sale.
When the RSI readings surpass 50 and show an upward trajectory, the bullish momentum persists. Conversely, readings below 50 signal a potential bearish trend.
Currently, the RSI is on the rise and positioned above 50. Despite indicating a bullish trend, it’s noteworthy that the upward movement is gradual.
Read more: How to Buy XRP and Everything You Need to Know
XRP Price Prediction: What’s the Trend’s Direction?
The technical analysis of the daily time frame does not help determine the trend. This is because of mixed readings in the RSI and price action.
The XRP price action shows that after breaking out from a descending resistance trend line, the XRP price was rejected by the 0.618 Fib retracement resistance level (red icon) at $0.75.
After another decrease, XRP broke out from a shorter-term descending resistance trend line but failed to sustain its increase.
Read More: Getting Started With XRP Wallets
The daily RSI is also at 50, indicating an undetermined trend.
Currently, XRP trades slightly above the $0.58 horizontal support level. Whether it breaks down or bounces can determine the future trend.
A breakdown from the support area could cause a 25% drop to the closest support at $0.48, while a bounce can catalyze a 20% increase to the 0.618 Fib retracement resistance level at $0.75.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
