Is There Any Hope for XRP? [Premium Analysis]

Since the beginning of November, the XRP price has lost 40 percent of its value. This was a relatively unexpected move — since many voices believed that the Swell conference would cause the price to pump, as it has done in previous years. However, that was not the case and, after failing to break out above $0.30, XRP began a rapid downward move. Well-known analyst Jacob Canfield had some rough words for XRP while outlining what he considers his biggest achievement — the fact that he stood away from XRP and implored others to do the same over the past two years. https://twitter.com/JacobCanfield/status/1206765832468156417?s=19 He outlined the XRP chart, suggesting that $0.10 or $0.15 could be good levels to buy. Let’s take a closer look at this price movement and see if XRP will get there or reverse prior.

Long-Term XRP Price Movement

The long-term chart for XRP gives a bearish outlook. The XRP price broke down below an ascending support line in place since August 2018. Afterward, it validated it as resistance in September and October 2019. There are three support areas:

1. $0.20
2. $0.14
3. $0.06

The XRP price is currently in the first one and has shown no signs of increasing or trying to initiate a reversal. The weekly RSI has not reached oversold levels and is going downward. The price has decreased below the wick support of November 25. While it is possible that the price begins a reversal at the current support area, the weekly chart does nothing to support this claim.

Descending Support Line

In the medium-term, XRP is following a descending support line in place since April 2019 and has validated it five times. At the time of writing, it was very close to it and had generated a bullish divergence in both the RSI and the MACD. This suggests that the XRP price is expected to make an upward move. The $0.25 resistance level is likely to act as the upper limit, as it previously acted as support before the price validated it as resistance afterward in December. At the beginning of December, Ripple released one billion XRP from its escrow, as has been stated in its production schedule. This did not have an effect on the price. If XRP continues following this support line, it will reach the support area of $0.15 in April 2020.

Previous History

The daily RSI has reached oversold values only three times prior. Each time, an upward move of a different magnitude has transpired. Currently, besides being oversold, it has generated a bullish divergence. The only time this occurred was September 2018, and the price initiated an upward move from $0.24 to $0.76. Considering the fact that the XRP price is at support are and at the ascending support line, an upward move should occur once more. However, the weekly outlook still suggests that we are not close to a bottom. A flip of the $0.24 resistance area and subsequent validation as support would cause us to revisit this conclusion. The XRP price has shown some signs of a reversal, making a short/medium-term upward move possible. However, we still cannot confidently predict that it has reached a long-term bottom.