Ripple (XRP) trades in the middle part of a long-term pattern. The further price trend depends on whether it makes a bounce or a bearish breakout.
The further price trend depends on whether it makes a bounce or a bearish breakout. The Ripple (XRP) bounced off the channel resistance line on March 29 and has been declining since.
A bearish break of the median channel line would jeopardize the whole bullish structure and the previous growth of the price.
Ripple falls below important resistance
Technical analysis indicates that XRP has been trading inside a long-term rising 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 break south out of this channel.
On May 29, the token rebounded from the channel resistance line (red icon) and started declining. The price soon broke below the $0.53 horizontal area and then tested it as resistance (red marks).
All of this is a bearish sign and could cause XRP to decline.. At the time of writing, the coin was trading directly above the midline of the channel.
The further trend of the price may depend on whether it makes a bearish breakthrough of this level or a bounce from it.
The further trend of the price may depend on whether it makes a bearish breakthrough of this level or a bounce from it.
In addition, the Relative Strength Indicator (RSI) is at an important level.. This index is a momentum indicator, indicating the overbought/oversold market, depending on whether it is above or below the 50 mark.
It is now holding directly around 50 and the bullish divergence trend line (green line). Accordingly, the further trend of XRP may depend on whether it makes a rebound or a bearish breakout.
The future trend of XRP may depend on whether it makes a rebound or a bearish breakout.
XRP: wave analysis gives bulls hope
In the meantime, wave analysis of the daily timeframe still gives hope to bulls. He suggests that XRP has launched the fifth, final, wave of bullish price structure.
If that is indeed the case, the target for the market could be the area between $0.67 and $0.72 (the Fibo level of 1.61 of wave 4 extension (black) and the combined length of waves 1 and 3 (white)).
Fibonacci levels are traditionally considered the most likely placeholders for stopping and reversing prices after a significant advance in any one direction.
As expected, at these levels, the market can win back some of the distance traveled and only then resume the movement in the original direction.
In addition, they can determine the limits of the price movement.
In the meantime, an absorption of the wave 1 high (red line) at $0.430 would cancel the bullish scenario for XRP. In that case, the price could fall to $0.360.