Trusted

Ripple (XRP) Price Outlook: What’s Next for XRP After Failing to Clear $0.53?

3 mins
Updated by Ryan Boltman
Join our Trading Community on Telegram

In Brief

  • Since failing to break the long-term resistance at $0.53 on June 10th, the price of XRP has been on a downward trajectory.
  • The price action , RSI readings and wave count all suggest that the downward movement will continue
  • An increase above $0.53 will invalidate this bearish outlook and will mean that the trend is bullish instead.
  • promo

The price of Ripple’s XRP moved above an important long-term resistance area but failed to reach a close above it, creating a very long upper wick instead.

Due to the rejection and ensuing decrease, the XRP price has likely begun a new upward movement. Both RSI readings and the wave count support this possibility.

Ripple Price Struggles at Long-Term Resistance

The price of XRP has made three attempts at moving above the long-term $0.53 resistance area since the beginning of September 2022. However, all three have been unsuccessful. More recently, XRP was rejected last week, creating a long upper wick and bearish candlestick (red icon).

The long upper wick is considered a sign of selling pressure, as is the ensuing candlestick, which negated most of the increase in May.

The Relative Strength Index (RSI) indicator suggests a downward movement is on the cards. By using the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.

XRP Price Weekly
XRP/USDT Weekly Chart. Source: TradingView

Bulls have an advantage if the RSI reading is above 50 and the trend is upward. But, if the reading is below 50, the opposite is true. Even though the indicator is above 50, it falls, a sign of weakness. More importantly, the RSI has generated a bearish divergence.

This is a sign of weakness and often precedes downward movements. The fact that the bearish divergence transpires inside an important resistance area and is combined with a bearish candlestick supports the possibility that a bearish trend reversal is nearby.

XRP Price Prediction: Wave Count Supports Descent

Based on a technical analysis of the daily time frame, the XRP price has reached its local top and will continue decreasing in June/July. The wave count is the main justification for this bearish XRP price prediction.

Technical analysts employ the Elliott Wave theory to determine the direction of trends by examining recurring long-term price patterns and investor psychology.

This year’s main characteristic of the XRP price movement is that the increases are three-wave structures. Hence, they are likely A-B-C corrections (white).

Subsequently, the decrease in April-May is a five-wave drop (black, highlighted). Thus, if the wave count is correct, the XRP price has now begun another five-wave decrease. In turn, the most likely area for the next low is at the $0.40 region.

XRP Price Movement
XRP/USDT Daily Chart. Source: TradingView

Despite this bearish XRP price prediction, an increase above the June high of $0.56 will mean the trend is still bullish.

The XRP price could increase to the next resistance at $0.90 in that case.

For BeInCrypto’s latest crypto market analysis, click here

Top crypto projects in the US | November 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
3Commas 3Commas Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | November 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
3Commas 3Commas Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | November 2024

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. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored