Ripple’s XRP Price Breaks Below Crucial Support Level
If you’ve been following Ripple’s XRP price, you may have noticed that it recently closed below a key horizontal area. This has raised concerns among investors as it suggests a bearish trend. In order for the price to turn bullish again, it will need to reclaim this support level and start moving upwards.
XRP Price Analysis: Bearish Outlook
When we analyze the XRP price on a weekly timeframe, we see several bearish indicators. Firstly, the price has been declining since reaching its yearly high of $0.93 in July. It was rejected at the 0.382 Fib retracement resistance level, signaling that sellers have taken control. Additionally, XRP fell below the long-term support level at $0.55, which was expected to provide a strong foundation. If the downward movement continues, the next support level is at $0.30, representing a 40% drop from the current price. However, reclaiming the $0.55 area could lead to an 85% price increase towards the yearly high.
RSI Turns Bearish, Indicating a Continuing Downward Trend
Traders often use the Relative Strength Index (RSI) to assess market conditions. A reading above 50 indicates a bullish trend, while a reading below 50 suggests a bearish trend. In the case of XRP, the RSI has fallen below 50 and broken its ascending support line, confirming a bearish trend. These indicators support the notion that the downward movement will persist.
Can Bullish Divergence Reverse the Trend?
The daily timeframe readings align with the weekly analysis, as XRP has shown deviations above and below the $0.54 area. These deviations are typically seen as bearish signals. Furthermore, the price has tested this area as resistance multiple times before continuing its decline. If the price keeps falling, the nearest support level is at $0.40, where an ascending support line has been in place since June 2022. The daily RSI is also below 50 and falling, indicating a bearish trend. However, there is some bullish divergence present, which could potentially precede a trend reversal. Nevertheless, it remains to be seen if this divergence is enough to override the other bearish signals.
Hot Take: Ripple’s Legal Battle and Potential Disruption
Aside from the technical analysis, it’s worth noting that Ripple has recently objected to the U.S. Securities and Exchange Commission’s appeal. Ripple argues that the SEC has failed to meet the necessary conditions for certification. Additionally, Panos Mekras, the founder of two crypto firms, believes that XRP has the potential to disrupt the banking industry.
Price Prediction: Support at $0.40, Potential for Bullish Reversal
In terms of price prediction, it is likely that XRP will drop to the nearest support level at $0.40. However, if the price manages to reclaim the $0.55 area, it would suggest a continuation of the bullish trend. In that case, we could see an 85% price increase, potentially reaching a new yearly high.
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