Ripple Price Falls After Rejection at Long-Term Resistance
Ripple’s XRP price recently experienced a rejection at a significant long-term resistance level, causing it to fall short of closing above it. This rejection and subsequent decline have likely initiated a new downward movement for XRP’s price. Both the Relative Strength Index (RSI) readings and wave count analysis support this hypothesis.
- XRP has made three unsuccessful attempts since September 2022 to surpass the long-term resistance level of $0.53, which is a crucial area.
- Two rejections in the past two weeks resulted in candlesticks with a long upper wick, indicating selling pressure and nullifying most of the gains made in May.
- The RSI indicator suggests a potential downward movement, as it is currently above 50 but declining, indicating weakness. A bearish divergence has also appeared in the RSI.
XRP Price Prediction: Wave Count Gives Bearish Outlook
Based on technical analysis of the daily time frame, XRP’s price has reached its highest point in a while and is expected to decrease in July. The Elliott Wave theory, which examines price patterns and investor psychology, supports this bearish prediction.
- XRP’s price has shown a distinct pattern of three-wave structures during increases, indicating potential corrections.
- The decline in April and May was a five-wave drop, and if the wave count is accurate, XRP’s price is now in another five-wave decline with a probable low around the $0.40 range.
- A rough estimate suggests that the price may bottom near July 25 at $0.39, but a more accurate prediction will depend on how the movement develops.
Hot Take
The recent rejection at the long-term resistance level and subsequent decline in XRP’s price indicate a potential downwards trend. The RSI readings and wave count analysis support this bearish outlook. However, if XRP manages to break above the resistance level, the trend could still be bullish with a potential rally to the next resistance at $0.90.
