Ripple’s XRP price broke out from a 700-day resistance line and culminated with a yearly high of $0.94. However, the price has fallen since, validating the $0.90 resistance area.
While the long-term trend is bullish due to the breakout above, the short-term one is still undecided. Thus, another final decrease could occur before the price regains its footing.
XRP Price Faces Rejection Despite Long-Term Breakout
The weekly time frame analysis for XRP indicates a positive outlook. This is primarily due to the breakout from a 700-day descending resistance line. Breakouts from such long-term structures often result in significant movements in the opposite direction.
Read More: Ripple (XRP) Price Prediction
After the breakout, XRP surpassed the $0.54 horizontal area, forming a bullish candlestick (green icon). Subsequently, the price reached the next resistance level at $0.90 but faced rejection within the same week (red icon). Presently, XRP is trading between these two levels.
The weekly Relative Strength Index (RSI) further supports the likelihood of a continued increase. Traders use the RSI as a momentum indicator to assess whether a market is overbought or oversold and to make decisions about accumulating or selling an asset.
Since the RSI reading is above 50 and rising, it indicates a bullish trend, signifying that bulls still hold an advantage in the market.
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XRP Price Prediction: Where Does Wave Count Predict Price Bottom?
The technical analysis from the short-term six-hour time frame also provides a bullish outlook. The main reason for this is the wave count.
Technical analysts employ the Elliott Wave theory as a means to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
The most likely wave count suggests that the XRP price is currently in wave four of a five-wave increase (white). This means that the rate of increase is expected to accelerate toward $1 after the correction is done.
The most likely area for the bottom of wave four is at $0.64. The area is created by a confluence of support levels, namely the 0.618 Fib retracement support level and the previous ascending parallel channel. A strong bounce at this level will confirm that wave five has begun.
Despite this bullish XRP price prediction, a decrease below the wave one high at $0.56 (red line) will mean that the trend is bearish. In that case, the XRP price will be expected to decrease to $0.40.
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