Ripple tries to recover above the midline of the long-term pattern. Success or failure could have serious implications for the future dynamics of XRP.
While short-term indicators suggest that XRP will continue to rise, the longer-term outlook remains unclear and leans toward a bearish outlook.
The Ripple (XRP) project token was a notable exception in the top 10 largest cryptocurrencies by capitalization last week, managing to register an intra-week gain of.
Last week, the court forbade the SEC to withhold important documents in the Ripple case. The move was a kind of “victory” for cryptostartup Ripple in the case against the regulator.
Research firm Messari also published a report that reported that the Ripple ecosystem is thriving despite the protracted proceedings with the SEC.
Today, new details in Ripple’s case against the SEC surfaced again.. According to Ripple’s lawyer John Deaton, the SEC initially knew that XRP was not a security.
Ripple tries to recover above critical support
As indicated by technical analysis, XRP has been trading inside an ascending parallel channel since June 2022.
This pattern is considered corrective, so its northward direction suggests that the broader trend in the currency is bearish and eventually the price will make a breakout to the south from this channel.
As expected, on March 29, the price rebounded from the channel resistance.. This caused a continuation of the downward movement.
The price subsequently fell below the $0.53 horizontal level, which created a declining high on April 14.
After that, a break below the midline of the channel indicated that XRP was in a bearish trend.. Thus, a breakout of the lower boundary of the channel is probable in the end.
But the price dynamics after that break-up were contradictory, as the price recovered and is trying to move above the midline of the channel again.
In addition, the Relative Strength Index (RSI), although it had earlier fallen below the 50 level and the uptrend line (in green), has since recovered above both levels.
It is a momentum indicator that indicates overbought/oversold and bullish/bearish market sentiment, depending on whether it is above or below the 50 mark.
What’s on the horizon for XRP on wave analysis
Shorter 4-hour timeframe wave analysis suggests that the current rebound is merely a relief rally followed by a potential new dip.
According to his results, the price of XRP has completed a five-wave bearish pattern (black).. This means that the trend is bearish. Moreover, the decline followed the upside movement of A-B-C, which further confirms this probability.
It is therefore quite possible that the current move is just a corrective rally.
So it is likely that the current rise is just a corrective rally.
If so, the most likely target for top formation is at $0.50-$0.52 (Fibonacci levels of 0.5-0.618 retracement).
Despite this bullish short-term outlook for XRP, a drop below the $0.41 wave A start level would mean that even the short-term trend is bearish.
In this case, an immediate decline to the channel support line at $0.37 is expected.
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