Ripple's Price Returns to Key Support: What's Next?
Date: 2024-01-04 Author: Dima Zakharov Categories: BLOCKCHAIN
Ripple Slips Below Key Support
A technical analysis of the weekly timeframe reveals that XRP has been following an ascending support line since May 2022. During this period, it broke through a significant horizontal zone and reached a new high in July 2023. However, this rapid growth proved to be unstable, leading to subsequent declines but setting a higher low. Ripple also formed a steeper ascending support line that remains intact.
Yesterday, XRP's price briefly dipped below this support line but managed to recover and reaffirm its position.
What the Analysts Are Saying
Crypto traders and analysts are generally optimistic about XRP's price dynamics. @RealXRPWhale noted the breakout from the descending resistance line, suggesting a significant potential pump.
@FLASH believes that breaking out from the symmetrical triangle could accelerate the rise towards $0.85, while @Cryptoes maintains a bullish sentiment as the price of Ripple closed above the horizontal support.
XRP Price Forecast: When Will the Uptrend Resume?
The technical analysis on the daily timeframe provides a neutral outlook due to price action and RSI indicators.
In the chart below, XRP bounced off the horizontal resistance zone at $0.54, forming a symmetrical triangle. However, yesterday's price movement broke out of this pattern, once again confirming the support area.
The RSI index is below the 50 mark, indicating a bearish trend. The future direction will depend on whether Ripple rebounds from the $0.54 level or breaks through it.
A breakthrough could lead to a 25% price drop to the nearest support at $0.42. Conversely, a successful rebound may trigger a 20% rise and a retest of the resistance level at $0.67.
