Ripple (XRP) Price Analysis: Bearish Trend Continues Despite Bullish Sentiments
Read the latest analysis on Ripple (XRP) price trends and chart patterns. Despite bullish sentiments in the XRP community, the price continues its bearish trend.
Posted 10 months ago in Market Analysis
The XRP price trend will maintain its bearish status unless it manages to achieve a closing value above $0.56.
Ripple’s XRP price has fallen since its yearly high in July. The price broke down from a long-term ascending support line in August. The price action, RSI readings, and Elliott Wave count all support the continuing decrease, at least in the short term.
Despite this bearish outlook, the community surrounding XRP is almost unanimously bullish, expecting significantly higher prices by year’s end.
A look at the weekly time frame technical analysis for XRP gives a pessimistic outlook. Both the readings of the Relative Strength Index (RSI) and the price action contribute to this bearish projection. After its peak at $0.95 in July, XRP’s price has been downward.
Notably, this decline didn’t halt at the $0.56 horizontal level, which had intermittently functioned as both support and resistance since April 2021. In light of the price surpassing this level in July, it was anticipated to act as support again. However, contrary to expectations, XRP’s price decisively broke below it.
Should the decline persist, the nearest support zone is $0.42, representing a 12% decrease from the current price. Conversely, the $0.56 horizontal area stands 20% higher than the present price. Some analysts believe that the bounce at the $0.42 area will initiate a significant upward movement that takes the price well above $1. However, this has not been the case so far. Rather, the price has hovered inside its long-term range.
The Relative Strength Index (RSI) is a valuable tool for traders, aiding in the assessment of market momentum and identification of potential overbought or oversold conditions. When the RSI surpasses 50 and is upward, it indicates buyer dominance. Conversely, an RSI below 50 with a descending trend suggests seller control, marking a downtrend and potential selling opportunities. Currently, the RSI is positioned below 50 and is decreasing, indicating characteristics of a bearish trend. Furthermore, the RSI has broken below an ascending support line (green), indicating a bearish trend.
While the immediate price outlook suggests an ongoing decrease in value, the trajectory of the long-term trend remains uncertain. This uncertainty stems from the existence of two valid wave counts currently in play. One scenario, the bearish count (black), suggests that Ripple’s price has completed a corrective A-B-C structure (black). If this scenario holds true, the price will continue its descent. On the other hand, the bullish count proposes that XRP is currently in the fourth wave of a five-wave upward movement (white). This upward movement has formed a leading, expanding diagonal, which explains the overlap between waves four and one. If the bullish count proves accurate, we anticipate the price to rebound when it reaches a long-term ascending support level at $0.40. This will then be followed by an ascent towards a long-term ascending resistance level at $1.25.
An analysis of the top posts in the X (formerly known as Twitter) platform shows that most well-known analysts are decisively bullish. @DefendDark believes that the price will increase towards what he states is the main resistance at $1.24. Two other analysts both use breakouts and bullish divergences to predict that the price will soon increase above $1.
Despite the bullish sentiments, the XRP price continues to be in a bearish trend. However, with the community expecting higher prices by the end of the year, the future trajectory of XRP remains uncertain.
Last updated 9/20/2023, 4:58:59 PM
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