Trusted

Ripple (XRP) Eyes $0.50 Again: Will the Tide Turn in Its Favor?

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

In Brief

  • Despite failing to clear a crucial resistance area, Ripple's XRP price created a bullish pattern, signaling a potential short-term bullish reversal.
  • The Relative Strength Index (RSI) and price action give conflicting signs for the future trend. The indicator is bearish while the price action is bullish.
  • Future XRP price prediction will be determined by whether XRP breaks out above $0.52 or gets rejected, which could lead to either a sharp rally or a drop.
  • promo

While Ripple’s XRP price failed to clear a crucial horizontal resistance area and fell afterward, it is currently attempting to find short-term support.

Despite the failure to break out, XRP’s price created a bullish pattern and potentially began a short-term reversal. The reaction and the $0.52 area will be crucial to determine the future trend.

Ripple Price Resumes Descent After Rejection

The XRP price has made three failed attempts at moving above the long-term resistance of $0.53 since September 2022 since the area had been in place for nearly a year; whether the price moves above or below it could determine the future trend.

Therefore, a breakout above it would be expected to accelerate the rate of increase, while a rejection could cause a sharp drop.

Next, the XRP price may have followed an ascending support line since the beginning of the year. When combined with the $0.53 area, this creates an ascending triangle, considered a bullish pattern.

This means that an eventual breakout from it will be the most likely scenario.

XRP Long-Term Price
XRP/USDT Weekly Chart. Source: TradingView

However, the Relative Strength Index (RSI) outlines a possibility for a downward trend. Traders rely on the RSI as a momentum gauge to determine if a market is excessively bought or sold, helping them decide whether to accumulate or sell an asset.

Bulls have the upper hand when the RSI reading surpasses 50, and the trend is upward. Conversely, an RSI drop below 50 reverses the situation. Despite the RSI being above 50, it is showing a decline, suggesting weakness.

Furthermore, there is a bearish divergence in the RSI. This is an occurrence in which a momentum decrease accompanies a price increase. It is often a precursor to downward movements.

XRP Price Prediction: Triple Bottom Can Lead to Bullish Momentum

According to technical analysis of the short-term six-hour time frame, the price of XRP will increase in the short term.

This bullish prediction is based on the price action and creating a short-term triple bottom, which is considered a bullish pattern. The triple bottom is also characterized by long lower wicks (green icon) and occurs inside a horizontal support area. Thus, it is likely that it leads to a bullish trend reversal.

After the final bounce, the XRP price broke out from a descending resistance line. This confirmed that the short-term trend is bullish, and an increase will follow. It is possible that the now-debunked news that Gary Gensler had resigned as the head of the SEC aided the increase.

The closest resistance area is at $0.52, created by the 0.618 Fib retracement resistance level. This is in close proximity to the previously outlined long-term $0.53 resistance area. Therefore, a breakout from one will likely cause a breakout from the other.

XRP Price Bullish Pattern
XRP/USDT Daily Chart. Source: TradingView

Therefore, the future XRP price prediction will be determined by whether XRP breaks out above $0.52 or gets rejected. In case of a breakout, the price can quickly rally to $0.65 and beyond.

However, a rejection would likely also cause a breakdown from an ascending support line and drop to $0.40.

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