Will Ripple’s Recent Downtrend Reversal?

Ripple XRP price broke from the long-term uptrend line of support in October 2022.

XRP is trading a short-term correction pattern and is getting close to joining support levels. Will it be enough to start shaking?

Ripple will be discontinued from long-term support

The weekly time frame technical analysis shows that XRP price broke from a long-term uptrend line of support last week. The trend line was there for 450 days before it was broken.

Last week's close below it was the first since the trend line first formed in October 2022. Additionally, it has resulted in a decline in XRP below a critical horizontal support area.

The weekly timeframe Relative Strength Index (RSI) legitimizes the gap. When assessing market conditions, traders use the RSI as a momentum indicator to determine whether the market is overbought or oversold and whether to accumulate or sell an 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. When the price breaks from the trend line, the indicator falls below 50 (red circle).

What are the analysts saying?

Cryptocurrency traders and analysts at X are looking at the future trend of XRP positively.

BeinCrypto's global head of news, Ali Martinez, uses the TD series indicator to predict the price will rise in the next four weeks.

Cryptogic announced a partnership between American Express and Ripple, tweeting:

BREAKING: American Express confirms partnership with #Ripple, accepting $XRP for payment transactions. Ripple Labs has officially admitted that American Express is using $XRP in the RippleNet system.

Analyst Edward Farina believes the price of XRP will be in the thousands since the IMF has already set it. He tweeted:

“The value of $XRP has already been set by the IMF and is in the thousands.” The official gold price is set twice a day: at 10:30 am and 3 pm GMT. This is called “Gold Fixing” and is determined by the LBMA. A long time ago I could see the value of $XRP set by IMF or BIS.

XRP Price Prediction: Where Does the Split Head?

While the weekly time frame is very weak, the daily XRP price suggests that it will soon go lower. This is because the price is approaching a convergence of support levels.

Since November 2023, XRP has fallen into a descending parallel channel. The price is trading lower and approaching the horizontal support area at $0.47, 7% below the current price. As the area will soon intersect with the support trend line of the channel, it could be a lower level.

In addition, the daily RSI creates significant divergence, where momentum gains go hand in hand with price declines. This often leads to a reversal of bullying tendencies.

Therefore, the most likely view suggests that XRP will gradually decline by another 7% until it reaches a confluence of support levels and then rebounds.

Despite the bearish XRP price forecast, a retracement of the $0.55 horizontal area will trigger a 22% rise to the channel's resistance trend line at $0.61.

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