Ripple’s XRP price fell below an important horizontal support area and broke down from a long-term ascending support line afterward.
The readings from the weekly timeframe are bearish, supporting the continuing decrease.
XRP Price Continues Bearish Trajectory
The technical analysis in the weekly time frame for XRP provides a bearish outlook. Both the RSI readings and the price action contribute to this bearish forecast.
The XRP price has decreased since reaching a new yearly high of $0.95 in July. Interestingly, the decrease did not stop at the $0.56 horizontal area. The area had intermittently acted as both support and resistance since April 2021.
Since the price exceeded it in July, the area was expected to provide support again. However, this was not the case, and the XRP price decisively broke down from it.
Next, XRP broke down from an ascending support line that had been in place since the beginning of the year. This further aligned with the previous bearish readings, confirming that the trend is bearish.
If the decrease continues, the next closest support area is at $0.42, 12% below the current price. On the other hand, the $0.56 horizontal area is 20% above the current price.
Relative Strength Index (RSI) is a valuable tool for traders in assessing the state of a market’s momentum and identifying potential overbought or oversold conditions. When the RSI is above 50 and rising, it suggests that buyers have the upper hand, indicating an uptrend and potential buying opportunities.
Conversely, when the RSI is below 50 and declining, it implies that sellers have more control, signaling a downtrend and potential selling opportunities.
The indicator is below 50 and falling, both signs of a bearish trend. Additionally, the RSI broke down from an ascending support line (green line), another sign that the trend is bearish.
Ripple news in September started bullishly when the company objected to the Securities and Exchange Commission (SEC) appeal of its victory.
However, due to the US crypto crackdown, Ripple has begun to hire overseas. 80% of the hirings this year have been outside of the United States.
XRP Price Outlook: Bullish or Bearish?
While the most likely immediate price scenario is the continuing decrease, the direction of the long-term trend is still undetermined. The main reason for this is the fact that there are still two valid wave counts in play.
Technical analysts employ the Elliott Wave theory as a means to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
The bearish count (black) indicates that the Ripple price has completed an A-B-C corrective structure (black). If so, the price will continue falling and break down below its 2022 lows at $0.29 (red line).
The bullish count suggests that XRP is in wave four of a five-wave upward movement (white). The increase has taken the shape of a leading, expanding diagonal, hence the overlap between waves four and one.
If the count is correct, the price will bounce at a long-term ascending support line at $0.40 and then increase to a long-term ascending resistance line at $1.25.
Therefore, the most likely XRP price prediction is the continuation of the decrease towards the closest support at $0.40. Whether the price bounces once it arrives will be key in determining the future trend’s direction.
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