Ripple (XRP): the last correction may be followed by a breakthrough to $1
Date: 2023-07-26 Author: Karina Ziganova Categories: BLOCKCHAIN
XRP broke through the 700-day resistance and hit a yearly high of $0.94. However, the price has since declined, turning the $0.90 area into resistance
While the long-term trend for XRP is bullish thanks to the recent breakout, the short-term trend has not yet been determined. Therefore, there may be another final decline before the price finds the ground under its feet again.
The long-term bullish breakout didn't help XRP too much
As the results of the technical analysis of the weekly chart show, the picture of the native token of the Ripple project looks optimistic. This is primarily due to the breakout of the 700-day descending resistance line. Breakthroughs of such long-term structures often lead to large-scale movements in the opposite direction.
After the bullish breakout, XRP crossed the horizontal area of $0.54 and formed a bullish candle (green icon). Subsequently, the price reached the next resistance level at $0.90, but bounced off it during the same week (red icon). Currently, the token is trading between these two layers.
The weekly Relative Strength Index (RSI) confirms the likelihood of continued growth. This momentum indicator is above the 50 mark and rising. This is indicative of a bullish trend and suggests that the bulls still have an edge in the market.
XRP Prediction: Where Price Will Find the Bottom
Meanwhile, the wave analysis of the shorter 6-hour timeframe also offers a bullish outlook.
The most likely wave scenario assumes that XRP price is currently in the fourth wave of a five-wave bullish structure (white). This means that after the correction is completed, the growth rate is expected to accelerate in the direction of the $1 level.
The most likely target level for the formation of the bottom of the fourth wave is the $0.64 area. Here, the Fibo support levels of 0.618 correction and the lower border of the previous ascending parallel channel converge. An energetic rebound from this level will confirm the beginning of the fifth wave.
Despite the bullish outlook, a decline in XRP below the first wave high of $0.56 (red line) would mean that the trend has become bearish. In this case, the price is expected to decline to $0.40.
