Ripple’s XRP Ripple (XRP) Price Breaks Below Crucial Support Level
If you’ve been following Ripple’s XRP Ripple (XRP) price, you may have noticed that it recently closed below a key horizontal area. This has raised concerns between investors as it suggests a bearish trend. In order for the price to turn positive trend again, it will need to reclaim this level of support and start moving upwards.
XRP Ripple (XRP) Price Analysis: Bearish Outlook
And once we analyze the XRP Ripple (XRP) price on a weekly timeframe, we see plenty of 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. In addition, XRP Ripple (XRP) fell below the long-term level of support at $0.55, which was expected to provide a strong foundation. If the downward movement continues, the next level of support is at $0.30, representing a 40% fall from the present price. Nonetheless, 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 over 50 indicates a positive trend trend, while a reading below 50 suggests a bearish trend. When it comes to XRP Ripple (XRP), the RSI has dropped 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 Ripple (XRP) has shown deviations over 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 sliding, the nearest level of support is at $0.40, where an ascending support line has been in place since June 2022. The daily RSI is likewise below 50 and sliding, indicating a bearish trend. Nonetheless, there is some positive trend 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 Probable Disruption
Aside from the technical analysis, it’s worth keeping in mind that Ripple has recently objected to the United States Securities and Exchange Commission’s appeal. Ripple argues that the SEC has failed to meet the necessary conditions for certification. In addition, Panos Mekras, the founder of two cryptocurrency corporations, believes that XRP Ripple (XRP) has the capacity to disrupt the banking industry.
Price Prediction: Support at $0.40, Probable for Bullish Reversal
In terms of price prediction, it is likely that XRP Ripple (XRP) will fall to the nearest level of support at $0.40. Nonetheless, if the price manages to reclaim the $0.55 area, it would suggest a to continue of the positive trend trend. In that case, we could see an 85% price increase, potentially reaching a new yearly high.
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