Ripple is currently trading above a significant horizontal support level. When analyzing the weekly timeframe, it is observed that XRP has been following an ascending support line since May 2022.
In July, the Ripple coin experienced a bullish breakout of a crucial horizontal area, resulting in a new yearly high. However, the price subsequently fell, forming a rising low (green icon) and a steeper ascending support line in August.
An experienced cryptocurrency trader named JD emphasized the significance of this trend line, drawing parallels to a similar one in the previous market cycle.
Currently, the price is positioned above the horizontal support area.
Source: TradingView
The Relative Strength Index (RSI) is currently increasing and above the neutral level of 50. It is worth noting that the upward movement of XRP has been gradual and steady, despite the overall bullish trend.
XRP Forecast: Future Direction of the Trend
Examining the daily timeframe does not provide clear indications of the future trend. The readings of the RSI index and price dynamics are ambiguous.
From a price action perspective, after breaking the descending resistance line, XRP experienced a bounce from the 0.618 Fibonacci retracement level (red icon) at $0.75.
Following another decline, Ripple managed to surpass a more short-term downward resistance line but failed to sustain this upward movement.
The daily RSI is situated around the neutral level of 50, indicating an uncertain trend.
Currently, the token is trading slightly above the horizontal support level of $0.58. The future trend of XRP may be determined by either a bearish breakout or bounce from this level.
Source: TradingView
If the support area is breached, it could potentially result in a 25% decline towards the nearest support level at $0.48. Conversely, a bounce from the support level might trigger a 20% rise for Ripple, targeting the 0.618 Fibonacci retracement resistance level at $0.75.
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