While the long-term trend on XRP is bullish thanks to the recent breakout, the short-term trend is still uncertain. Therefore, there could be one more final decline before the price finds its footing again.
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The long-term bullish breakout didn’t help XRP too much
According to the results of the technical analysis of the weekly chart, the picture for the native token of the Ripple project looks optimistic. This is primarily due to the breakout of the 700-day descending resistance line. Breakouts of such long-term structures often lead to large-scale moves in the opposite direction.
After the bullish breakout, XRP broke through the horizontal area of $0.54 and formed a bullish candlestick (green icon).
After a bullish breakout, XRP broke through the $0.54 horizontal area and formed a bullish candle (green icon). Subsequently, the price reached the next resistance level at $0.90 but bounced off it during the same week (red icon). The token is currently trading between these two levels.
Source: TradingView
Weekly Relative Strength Index (RSI) confirms the likelihood of continued growth. This momentum indicator is above the 50 mark and rising. This indicates a bullish trend and suggests that the bulls still have the upper hand in the market.
And that’s where the price is headed.
XRP forecast: where the price will find a bottom
Meanwhile, wave analysis of the shorter 6-hour timeframe also offers a bullish outlook.
The most likely wave scenario suggests that the XRP price is currently in the fourth wave of a five-wave bullish structure (white). This means that after the correction is over, the growth rate is expected to accelerate towards the $1 level.
The most probable target level for the formation of the base of the fourth wave is the area of $0.64. Fibo support levels of 0.618 correction and the lower boundary of the previous ascending parallel channel converge here. A vigorous rebound from this level will confirm the beginning of the fifth wave.
Source: TradingView
Despite the bullish outlook, a decline in XRP below the first wave high of $0.56 (red line) would indicate that the trend has turned bearish. In this case, the price is expected to decline towards $0.40.