Where will the Ripple (XRP) price increase lead?

The price of Ripple XRP increased on August 17 and made a high low on September 11.

The price has broken above the descending resistance trend line but is still trading below the $0.55 horizontal resistance area.

XRP breaks down after a long lower wick

Technical analysis for the daily time frame for XRP shows that the price formed a very long lower wick on August 17 (green icon). A wick is considered a pressure buying signal, indicating that sellers are unable to lower the price further and that buyers have taken it instead.

After making a major low on September 11th, XRP price broke out of the downtrend resistance line three days later. This rose to $0.55 on September 29.

The next rejection (red icon) confirmed the $0.55 horizontal position as resistance.

Despite the rejection, XRP formed a pair of flickering candlesticks on October 2nd. This type of candlestick eliminates the general reduction from the past.

However, the candlestick still failed to spark above the $0.55 resistance area.

In news, Ripple CEO Brad Garlinghouse has announced that the company will not acquire Fortress Trust. This happened after the beach hurt some of its customers.

In other news, Ripple Labs has hired former US White House aide Lauren Belive as its head of US public policy and government.

XRP Price Prediction: Crash Above $0.55?

A close look at the daily time wave number and RSI will support the possibility of a breakout.

Technical analysts use Elliott Wave theory as a method to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.

The wave count indicates that XRP's movement since August 17 may be an ABC structure (black). This wave is characterized by a potential three-wave decline.

Waves A: C at a ratio of 1:1 leads to a high of $0.58, an increase of 11% from the current price. If wave C extends to 1.61 of the length of wave A, the price may increase by 25% and reach $0.66.

The daily RSI also supports the rise in the price of XRP. Traders use the RSI as momentum to assess whether the market is overbought or oversold and to stockpile 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.

The indicator moves above 50 (green icon) and up, both are signs of a bearish trend. In addition, it is presented by the differential pressure (green line) before the spill.

This increase in speed is a huge improvement when it comes to cost reduction.

Despite this XRP price prediction, another rejection around $0.55 means the trend is not bullish.

At this point, a 20% drop to the $0.41 support area is possible.

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