Despite a failed bullish breakout attempt, XRP formed a bullish pattern and potentially began a short-term reversal. The behavior of the price in the $0.52 area will be crucial in determining the future trend.
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Ripple resumes falling after rebound
As the results of technical analysis of the weekly chart show, the Ripple project kinoin has made three unsuccessful attempts to rise above long-term resistance of $0.53 since September 2022. Since that area has been on the chart for almost a year, the future trend of XRP may depend on whether the token manages to break that barrier.
<A break above it, therefore, is expected to accelerate the pace of growth, while a pullback could cause a sharp decline.
In addition, the price of XRP may have been moving along an uptrending support line since the beginning of the year.. Combined with the $0.53 area, this creates an upward triangle on the chart, which is considered a bullish pattern.
This means that a bullish breakout from it would be the most likely scenario.
Source: TradingView
The Relative Strength Index (RSI), however, indicates the possibility of a decline. Traders rely on RSI as a momentum indicator to determine if the market is buying or selling excessively, which helps them decide whether to accumulate or sell an asset.
Bulls have an advantage when RSI values are above 50 and the trend is up.
Bulls have an advantage when RSI values are above 50 and the trend is upward, and vice versa. In the case of XRP, even though the RSI is above 50, it is declining, suggesting weakness.
In addition, the RSI is signaling a bearish divergence.. It is a phenomenon in which the increase in price is accompanied by a decrease in momentum. This is often a precursor to a downward movement of an asset.
XRP Forecast: Triple Bottom Could Motivate Bullish Momentum
According to technical analysis of the shorter-term six-hour timeframe, the token could rise in the short term.
This bullish forecast is based on price momentum and the formation of a short-term triple bottom, which is considered a bullish pattern. This triple bottom is also characterized by long bottom wicks (green icon) and is formed inside a horizontal support area. So it is likely to lead to a bullish reversal of the trend.
After the final bounce, the price of XRP made a bullish break of the downside resistance line. This confirmed that the short-term trend is bullish and upside is expected.
The nearest resistance area is at $0.52 (0.618 retracement Fibo level). It is in close proximity to the previously indicated long-term resistance area of $0.53. Therefore, a breakout of one of them will most likely cause a breakout of the other.
Source: TradingView
Hence, the outlook for XRP will depend on whether the price breaks above the $0.52 level or breaks away from it. In the case of a bullish breakout, the token could quickly climb to $0.65 or higher.
A rebound, however, would also likely result in a break of the upside support line and a drop to $0.40.
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