The XRP Price Holds Strong Support
The XRP price is currently holding above a long-term horizontal support area, which it previously broke out from. This support level has been in place since September 2022. However, XRP is also trading below a short-term descending resistance trend line, forming a descending triangle pattern.
XRP Approaches the End of a Triangle
Since the start of 2023, the XRP price has been following an ascending support trend line, leading to a new yearly high of $0.95 in July. This upward movement also resulted in a breakout from the long-term horizontal resistance area. However, XRP has since encountered a descending resistance trend line and has been rejected multiple times.
These trend lines have formed a symmetrical triangle pattern, indicating a neutral market condition. XRP is rapidly approaching the end of this pattern, which suggests an imminent decisive movement.
RSI Indicates an Undetermined Trend
The Relative Strength Index (RSI) is currently at 50 on the weekly time frame, suggesting an undetermined trend for XRP. The RSI is a momentum indicator used by traders to determine whether a market is overbought or oversold. Readings above 50 with an upward trend indicate bullish strength, while readings below 50 suggest bearish pressure.
XRP Price Prediction: Bearish Outlook
On the daily time frame, technical analysis points to a bearish outlook for XRP. The price action shows the formation of a short-term symmetrical triangle since November 2023, and if the support at $0.55 breaks down, it could lead to further downside momentum.
The daily RSI is also falling and currently below 50. Although there is a possibility of bullish divergence, it has not been confirmed yet.
Analyst Predicts XRP Pump
Cryptocurrency analyst Ben Armstrong believes that despite the bearish predictions, the XRP price will experience a pump soon. He tweeted that he expects the pump to start by the end of the day on Monday.
Can XRP Initiate a Bounce?
If XRP manages to find strong support at the $0.55 level, it could trigger a 10% bounce towards the descending resistance trend line at $0.60.
Hot Take: XRP Price Faces Decisive Moment
The XRP price is currently at a critical juncture as it approaches the end of a symmetrical triangle pattern. Traders are eagerly awaiting a decisive movement that will determine the future direction of XRP. The RSI indicates an undetermined trend, and technical analysis suggests a bearish outlook in the short term. However, some analysts believe that a pump is imminent for XRP. It remains to be seen whether XRP will initiate a bounce or continue its downward trajectory.
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