Ripple: This area will determine the fate of XRP's further trend
Date: 2023-07-05 Author: Karina Ziganova Categories: IN WORLD
Although the price of XRP failed to overcome an important horizontal resistance area and fell, it is now trying to find short-term support.
Despite the failed bullish breakout attempt, XRP formed a bullish pattern and potentially triggered a short-term reversal. Price action in the $0.52 area will be crucial in determining the future trend.
Ripple resumed falling after a rebound
As the results of the technical analysis of the weekly chart show, the Ripple coin's rate has made three unsuccessful attempts to rise above the long-term resistance of $0.53 since September 2022. Since this area has been on the chart for almost a year now, the future trend for XRP may depend on whether the token manages to break this barrier.
Accordingly, a break above it is expected to accelerate the pace of growth, while a rebound could lead to a sharp drop.
In addition, XRP price may have been moving along the upward support line since the beginning of the year. Combined with the $0.53 area, this creates an ascending triangle on the chart, which is considered a bullish pattern.
This means that a bullish breakout from it would be the most likely scenario.
However, the Relative Strength Index (RSI) indicates the possibility of a decline. Traders rely on the RSI as an indicator of momentum to determine if buying or selling in the market is excessive, which helps them decide whether to accumulate or sell an asset.
Bulls have an advantage when the RSI values are above 50 and the trend is upward, and vice versa. In the case of XRP, despite the fact that the RSI is above 50, it is declining, which indicates weakness.
In addition, the RSI gives bearish divergence signals. This is a phenomenon in which an increase in price is accompanied by a decrease in momentum. This is often a harbinger of a downward movement of an asset.
XRP Forecast: Triple Bottom Could Cause Bullish Momentum
According to the technical analysis of the shorter-term six-hour timeframe, the token may rise in the short term.
This bullish outlook is based on price performance and the formation of a short-term triple bottom, which is considered a bullish pattern. This triple bottom is also characterized by long lower wicks (green icon) and is formed inside a horizontal support area. Thus, it is likely that it will lead to a bullish trend reversal
After the final rebound, XRP price made a bullish breakout of the downward resistance line. This confirmed that the short-term trend is bullish and is expected to rise.
The nearest resistance area is at $0.52 (Fibo level 0.618 retracement). It is in close proximity to the previously designated long-term resistance area of $0.53. Therefore, the breakthrough of one of them is likely to cause the breakthrough of the other.
Thus, the forecast for XRP will be determined by whether the price breaks above the $0.52 level or is thrown away from it. In the event of a bullish breakout, the token can quickly soar to $0.65 and above.
However, a rebound is likely to also lead to a breakout of the ascending support line and a fall to $0.40.
