The Ripple XRP price has been experiencing a downward trend since July 13 and recently formed a lower high on November 13.
This decline has brought XRP close to a crucial horizontal support area, which will determine the future direction of the trend.
Ripple Falls After Range High Rejection
An analysis of the weekly timeframe reveals that the XRP price has been trading above an ascending support trend line since the beginning of the year.
In October, the price bounced off this trend line (green icon) and started a significant upward movement. However, instead of breaking out from its range high, XRP created a long upper wick and fell (red icon), indicating selling pressure.
Currently, XRP is trading within a horizontal range.
What Do Analysts Say About the Increase?
According to cryptocurrency traders and analysts, the long-term XRP price trend remains bullish.
CryptoToesTA identified a bullish inverse head and shoulders pattern, suggesting that a breakout from its neckline could trigger a substantial price increase.
EgragCrypto also holds an extremely bullish view of the future trend and outlined two potential scenarios for XRP’s price movement until the end of 2024.
XRP Price Prediction: Will Price Bounce or Break Down?
Similar to the weekly timeframe, the daily chart shows mixed readings for XRP’s price action and RSI indicator. On October 19, the price broke out from a long-term descending resistance trend line, indicating the completion of a correction and the start of an upward movement. However, on November 13, the price was rejected at the 0.618 Fib retracement resistance level with a long upper wick, confirming selling pressure and the $0.74 resistance area.
The daily RSI is decreasing but still above 50, and its bullish divergence trend line remains intact. The reaction of the XRP price to the $0.55 support area, along with the long-term ascending support trend line, will determine the future trend. A breakdown below this support level would indicate the end of the upward movement and potentially lead to a 30% drop to the next support at $0.42. Conversely, a strong bounce at $0.55 could propel XRP to revisit the 0.618 Fib resistance, resulting in a 22% increase from the current price.
Hot Take: XRP’s Future Depends on Key Support Area
The Ripple XRP price is currently at a critical juncture as it approaches a pivotal horizontal support area. The outcome of this support level will determine whether XRP continues its upward trajectory or experiences a more significant decline. Analysts hold a bullish view on XRP’s long-term trend, citing patterns and historical data as evidence for potential price increases. However, mixed readings on both the weekly and daily timeframes leave room for uncertainty. Traders and investors should closely monitor XRP’s reaction to the $0.55 support level and consider its implications for future price movements.
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