Ripple XRP Price Drops After Breakout – What’s Next?
Ripple XRP's price rally has stalled despite breaking away from the $0.55 long-term horizontal resistance area.
Will the XRP price recover and make another distinct attempt or are new lows in store?
XRP has crashed but will fight to keep increasing
The technical analysis for XRP in the weekly time frame shows that the price has increased since the beginning of the year with an upward support trend line.
At this point, the price has risen from the $0.55 horizontal resistance area and reached the yearly high of $0.94 in July (red icon).
However, XRP failed to sustain its rise. Instead, it formed a very long upper wick and fell, reaching the upward support trend line again in August (green icon).
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After stumbling back above the trend line in October, the XRP price has rebounded from around $0.55. XRP reached a high of $0.75 this week, but the rise in XRP price stopped once again.
Instead, it formed a long upper wick, and is approaching the $0.55 horizontal area.
The weekly Relative Strength Index (RSI), a momentum indicator, gives a positive reading.
Traders use the RSI as a momentum indicator when evaluating market conditions to determine whether the market is overbought or oversold and whether to stock or sell the asset.
If the RSI reading is above 50 and the trend is up, the bulls still have an advantage, but if the reading is below 50, the opposite is true. RSI is currently above 50.
Read more: (XRP) Ripple price predictions
What do analysts say about the increase?
Cryptocurrency trader TonythebullBTC is extremely bullish on XRP prospects for several reasons. he said.
“I find it tempting not to be bullish just looking at this on XRP: BBW tightest ever, %B above 0.5 indicates price action, price has broken out of the upper Bollinger Band – a close above it is a buy signal. He said.
Cryptoes_ta is also bullish as the price holds above the $0.60 minor support area. However, Naveed Ahmed expressed his doubts after a 1.5% decline since November 13.
Ripple XRP Price Prediction: Will the Price Recover?
The technical analysis from the daily time frame gives a mixed reading.
On the positive side, XRP bounced off a bearish trend line on October 19. The trend line had been in place for 98 days when it occurred.
After the breakout, XRP price rejected the 0.618 Fib retracement resistance level on November 13. Ever since its rejection, XRP has plummeted.
Read more: How to buy XRP and everything you need to know
Daily RSI is also mixed. While the indicator is declining, it is still slightly above 50. Additionally, it is approaching the bullish variance trend line (green) that preceded the overall increase.
Therefore, RSI rising above the 50 level can determine the future trend.
A successful RSI rally could lead to a bullish rally alongside XRP price gains at the $0.60 support. This could lead to a rise from the 0.618 Fib resistance and 50% to the next resistance at $0.94.
Although this is a huge XRP price prediction, a close below the $0.60 horizontal support area could lead to a 25% decline to the next closest support at $0.50.
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Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
