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Is This the XRP Price Move We’ve All Been Waiting For?

2 mins
9 December 2022, 13:00 GMT+0000
Updated by Geraint Price
9 December 2022, 13:00 GMT+0000
In Brief
  • XRP is trading inside the $0.384 support area.
  • It is trading inside a long- and a short-term symmetrical triangle.
  • The short-term RSI is bullish.
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The XRP price is trading inside an important long-term horizontal support area. However, the majority of indicator and price movement readings are neutral.

The XRP price has increased alongside an ascending support line since June 18. It bounced at the line twice on Nov. 9 and 14 (green icon), creating bullish candlesticks each time.

Shortly afterward, the XRP price moved above the horizontal area with an average price of $0.384. This is a crucial level since it has intermittently acted as both support and resistance since May. Now, the area is expected to provide support once more. So, the price action is relatively bullish.

Despite being above support, the direction of the future trend is not entirely clear. The two main reasons for this are the presence of a symmetrical triangle, and the RSI reading of 50. Both of these signs align with a neutral trend.

Since the XRP price is trading above the $0.384 area, a movement toward the resistance line at $0.43 is the most likely XRP price forecast. If a daily close below $0.384 occurs, a fall toward the support line at $0.35 would be expected.

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

Positive XRP news could also be on the horizon. XRP, which is a digital asset that serves as a native token of Ripple Labs, has been mired in a legal battle with the Securities and Exchange Commission (SEC). Ripple’s legal team made their final submission in their legal battle with the SEC on Dec. 2.

In it, they stated that the SEC failed to prove the existence of an investment contract. Hence, the Ripple founders are entitled to summary judgment on the decision to sell to foreign exchanges. A positive resolution of the drawn-out case could have a positive effect in the XRP price.

Can XRP Price Break Out From Short-Term Pattern?

The technical analysis from the six-hour time frame provides a more bullish outlook. The two main reasons for this are the hidden bullish divergence in the RSI (green line) and the presence of a symmetrical triangle. 

While the symmetrical triangle is considered a neutral pattern, it is transpiring after an upward movement. As a result, a price breakout from it would be the most likely scenario. The hidden bullish divergence in the RSI aids this possibility. The sub-wave count for the triangle is given in red. The XRP price increased during the past 24 hours and attempted to break out. XRP reached a high of $0.396 before falling slightly.

A breakout that travels the entire height of the triangle would take the XRP coin to $0.430, aligning with the previously outlined resistance area. The reaction once the XRP price gets there can help to determine the long-term trend.

On the other hand, a decrease below the sub-wave C low of $0.373 would invalidate this bullish XRP price.

XRP Price Triangle
XRP/USD Six-Hour Chart. Source: TradingView

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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.