On May 16, 2019, the XRP price reached a high of 5780 satoshis. Since then, it has been gradually decreasing.
At the time of writing, it was trading slightly above 3100 satoshis.
Will the XRP price continue its decrease or is there a reversal in store? Keep reading below in order to find out.
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XRP Price: Trends and Highlights for July 9
- XRP is trading inside a descending wedge.
- There is bullish divergence developing in the RSI and the MACD
- There is resistance near 5500 and 4000 satoshis.
Weekly Support for the XRP Price
In December 2017, XRP reached a low of 1200 satoshis. An upward move ensued, and the price reached highs of over 20,000 satoshis by the end of the year. Since then, the XRP price has been gradually decreasing.
XRP has reacted to several Fibonacci levels, specifically the 0.618 and 0.786 ones in April and September 2018 respectively.
At the time of writing, it is trading slightly above the 0.88 fib level.
If this level does not provide support, XRP is likely to decrease to the level prior to the beginning of the upward move at 1200 satoshis.
Descending Wedge
On May 13, XRP reached a low of 4033 satoshis. An upward move ensued. On June 4, the XRP price reached a high of 5460 satoshis. Since then, it has been decreasing, trading inside the descending wedge outlined below.
At the time of writing, the price was struggling to stay above the support line.
Additionally, it is rapidly approaching the end of the wedge — at which point an upward or downward move should occur.
Which one is more likely?
Possible Reversal
Since June 24, the XRP price has been making lower lows — decreasing at the rate predicted by the support line.
During this time, however, both the RSI and the MACD have been generating higher values.
This is known as bullish divergence and often precedes XRP price increases.
The divergence is more pronounced in the RSI.
The fact that it is occurring inside a bullish pattern further affirms its validity.
If an upward move is initiated, where will the price begin to reverse?
Resistance Areas
Two resistance areas are outlined below.
The first resistance area is found near 4000 satoshis. It coincides with the lows of May 13, the beginning of the support line of the wedge.
The second resistance area is found near 5500 satoshis. It coincides with the highs of June 6, the beginning of the resistance line of the wedge.
According to our analysis, the price is likely to reach at least one of these areas.
Summary
The price of XRP is currently above a long-term support area. A breakdown below it could lead to prices as low as 1200 satoshis. In the short-term, it is trading inside a descending wedge, which is considered a bullish pattern. The technical indicators support a breakout from the wedge and an upward movement towards the resistance areas outlined above. Do you think the XRP price will breakout from the wedge? Let us know in the comments below.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.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
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