Is $0.55 Level a Turning Point for Ripple (XRP) Price Trend?

Published on:

The Ripple XRP price has fallen since creating a lower high inside its trading range on November 13.

The price action since October has been mixed, and the XRP price now approaches a critical horizontal support area. Will it bounce or break down?

Ripple Trades in the Middle of Range

The weekly timeframe technical analysis for XRP shows that the price has traded in a horizontal range since reaching a yearly high of $0.95 in July. More recently, it was rejected by the range high in November (red icon), creating a long upper wick and bearish candlestick.

Since the start of the year, the XRP price has also followed an ascending support trend line. More recently, it bounced at the trend line in October (green icon).

Currently, the XRP price trades in the middle of its horizontal range, having made no significant movement in the last three weeks.

XRP/USD Weekly Chart. Source: TradingView

Market traders use the Relative Strength Index (RSI) as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.

The weekly RSI gives a mixed reading since the indicator is falling but is above 50.

Read more: Best Crypto Sign-Up Bonuses in 2023

What Are Analysts Saying?

Despite the mixed readings from the weekly time frame, cryptocurrency traders and analysts on X are bullish on the future XRP trend.

Cryptoes_ta noted the similarities between the current XRP movement and those that preceded significant increases since the start of the year.

XRP Price Movement Weekly
XRP/USDT Daily Chart. Source: X

Lord XRP also suggests that the trend is bullish, though he noted a cup and handle pattern that is expected to lead to a significant increase.

Finally, Amonbuy gave a prediction of $6 for XRP in the next bull run. This would constitute a new all-time high price.

Ripple Labs CTO David Schwarz has accused the Securities and Exchange Commission (SEC) of misrepresenting facts in order to secure a restraining order against crypto company Debt Box.

XRP Price Prediction: Is the Next Move Up or Down?

The daily chart aligns with the weekly timeframe, giving a mixed reading. The indecision comes from the RSI and price action.

The price action shows that despite a breakout from a descending resistance trend line, the 0.618 Fib retracement resistance level at $0.74 rejected the XRP price on November 13. This created a long upper wick (red icon) and initiated the aforementioned rejection from the range high.

The XRP price has fallen since and nearly reached the $0.55 horizontal support area.

The daily RSI is also decreasing and is at 50. While this can be seen as a bearish signal, the bullish divergence trend line (green) that preceded the XRP upward movement is still intact. This leaves open the possibility that the bullish trend is still intact.

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

As a result of these mixed readings, whether the XRP price breaks down below $0.55 or bounces can determine the future trend. A breakdown can lead to a 35% decrease to the next support at $0.42.

On the other hand, a bounce will likely lead to a 15% increase to the 0.618 Fib retracement resistance at $0.74.

For BeInCrypto’s latest crypto market analysis, click here.

Top crypto platforms in the US | December 2023

The post Is $0.55 Level a Turning Point for Ripple (XRP) Price Trend? appeared first on BeInCrypto.

Source link