Ripple Price Analysis: XRP/BTC Bounces on the Support Line

At the time of writing, it was trading near 3800 satoshis — having lost around 60 percent of its value since the beginning of the year. Will an upward move soon begin? Below, we will analyze the XRP price in different time-frames alongside technical indicators and try to answer this question. For our previous analysis, please click here. If you would like to trade XRP on our partner exchange, follow this link to get all set up on XCOEX.

XRP Price: Trends and Highlights for June 2

• The XRP price is trading inside a descending channel.
• In a daily time-frame, there is bullish divergence developing in the RSI and the MACD.
• The price is inside a significant support area.
• There is a slight long-term bullish divergence developing in the RSI.

Daily Time-Frame

On Apr 30, the XRP price reached a high of 5956 satoshis. A gradual decrease was followed by an increase. Since then, the price has made several lower highs, creating the descending channel outlined below: While we drew a line parallel to the resistance in order to find the support line, it has only been touched twice. Therefore, it is possible that the price will follow a different support line. There is a significant resistance near 4000 satoshis, created by the previous support on May 13. An analysis of technical indicators supports an increase in the resistance line. Since reaching the aforementioned low on May 13, the RSI and the MACD have been increasing. This is known as bullish divergence and often precedes price increases. In the case of XRP, it is likely that it will be the catalyst for an upward move towards the resistance line of the channel.

Weekly Time-Frame

In a longer-term view, we can see that the XRP price is currently trading inside a major support area at 3200-3800 satoshis. The area previously acted as support on Aug 2017, and as resistance afterward in September of the same year. Furthermore, this area coincides with the 0.88 fib level of the entire upward move. On August 2018, the XRP price found support slightly above this area before beginning an upward move. Similar to the daily time-frame, the weekly RSI has been generating bullish divergence during the same period. This divergence, however, is much less significant in value. This is customary in such long-term time-frames. A breakdown below this area could trigger a rapid decrease towards the beginning of the upward move at 1500 satoshis. At the current time, this does not seem likely.

XRP Price Summary

The price of XRP has been trading inside a descending channel since the beginning of May. The bullish divergence has been created in both the RSI and the MACD. In a weekly time-frame, the XRP price is currently inside a very significant support area. Technical indicators support an upward move. What do you think about the XRP price? Let us know in the comments below!

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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.  Images are courtesy of Shutterstock, TradingView.