Ripple (XRP) Comeback Plan: Bulls Aim for 85% Price Rise on This Resistance Break
Ripple’s XRP price has decreased considerably since its yearly high. The price is at risk of closing below the $0.55 horizontal area.
Whether the price closes below the area or bounces will determine the future price trend.
XRP Price Falls Below Long-Term Support
The technical analysis in the weekly time frame for XRP gives a mostly bearish outlook. There are several reasons for this.
Firstly, the XRP price was rejected by the 0.382 Fib retracement level at $0.93 as soon as it reached a new yearly high. This created a very long upper wick (red icon), considered a sign of selling pressure.
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Secondly, the price is now falling below the long-term $0.55 horizontal support area. The area has intermittently acted as both resistance and support since the beginning of 2021. Therefore, a weekly close below will confirm that the trend is bearish. In that case, a 40% drop to the $0.30 horizontal support area will likely be the future price scenario.
XRP/USD Weekly Chart. Source: TradingView
Finally, the weekly RSI is turning bearish. The RSI is a momentum indicator used by traders to evaluate whether a market is overbought or oversold and to determine whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.
The indicator broke down from an ascending support line (green line) and is now at risk of falling below 50. However, similarly to the price action, the RSI has not closed below 50 yet, offering hope for a potential bullish reversal. In that case, the 0.382 Fib retracement resistance would be 85% above the current price.
It is also worth mentioning that the Ripple vs. SEC case will continue next year, with the next trial date being April 2024.
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Will XRP Price Fall to Ascending Support?
The daily timeframe readings support the bearish ones from the weekly timeframe. The XRP price has fallen considerably below the main support area at $0.54 in this timeframe. In fact, the price has validated the area as resistance twice (red icons).
Additionally, the daily RSI is below 50 and falling. These are both considered signs of a bearish trend.
If the downward movement continues, there is an ascending support line at $0.39. A decrease in it would amount to a drop of 23%, measuring from the current price. The line could provide temporary relief before the long-term horizontal support area at $0.30.
XRP/USDT Daily Chart. Source: TradingView
Despite this bearish XRP price prediction, a close above the $0.55 horizontal area will mean that the breakdown is invalid and the trend is still bullish. In that case, an 85% increase to the $0.93 resistance will likely be the future price outcome.