Thanks to the successful breakout, the long-term trend on Ripple remains bullish. While the short-term trend isn’t clear yet, it’s safe to assume that XRP will soon hit, if it hasn’t already, a bottom.
YouTube feed
.
Ripple declines after bouncing off resistance
According to technical analysis of the weekly chart, the picture for the Ripple project token looks optimistic. This is mainly due to the breakout of the descending resistance line that was present on the 700 day chart. Breakouts of such long-term patterns often lead to significant price moves.
The Ripple market is also positive.
News on Ripple also remains positive. Massive international adoption of the project picked up after Ripple’s historic victory over the U.S. Securities and Exchange Commission (SEC) after a long legal battle over whether XRP was a security.
Ripple’s victory over the U.S. Securities and Exchange Commission (SEC) was a historic victory for Ripple after a long legal battle over whether XRP was a security.
After a bullish breakout, XRP successfully broke the horizontal resistance zone at $0.54 to form a bullish candle. The token then reached the next resistance level at $0.90, but bounced off of it (red icon) during the same week.
The token then reached the next resistance level at $0.90, but bounced off of it during the same week (red icon).
XRP is currently trading very close to the midpoint between these two levels.
Source: TradingView
Weekly Relative Strength Index (RSI) further confirms the likelihood of continued gains. This momentum indicator is above the 50 mark and rising, indicating a bullish trend and suggesting that the bulls still retain an edge in the market.
The XRP.
XRP outlook: has the correction ended
Meanwhile, the wave analysis of the shorter daily timeframe also reflects a positive picture for Ripple.
According to the most likely wave scenario, the price is now in the fourth wave of a five-wave bullish structure (white color). This suggests that once the corrective phase is over, growth is expected to accelerate towards the $1.10 target level. This is the level of 1.61 of the outer retracement of the fourth wave, and it is 66% away from the current price.
If the bottom has not yet been reached, the most likely area for it is the $0.64 area, which is formed by the confluence of the 0.618 Fibonacci retracement support level and the previous upward parallel channel.
A strong bounce from this level would confirm the start of the fifth wave.
A strong bounce from this level will confirm the beginning of the fifth wave. The price has already almost reached it, so a rebound will confirm the formation of a bottom.
.
Source: TradingView
Despite the bullish outlook for Ripple, a drop in XRP below the first wave high at $0.56 (red line) would indicate a bearish trend. In such a scenario, the price is likely to fall to the channel support line, which is currently at $0.50. This would imply a 25% drop.