Ripple has breached a significant long-term support level
On the weekly timeframe, XRP broke out of a long-term ascending trendline last week. This trendline had previously provided price support for a span of 450 days.
Last week marked the first time since its inception in October 2022 that the token closed below this trendline. Consequently, XRP experienced a drawdown below the reversal horizontal support area.
Source: TradingView
The weekly Relative Strength Index (RSI) confirms the bearish breakout. As the price made this breakout, the indicator dropped below the neutral level of 50 (as seen in the red circle).
On the other hand, traders and analysts on Platform X remain positive about XRP’s prospects. BeInCrypto analyst Ali Martinez, utilizing the TD indicator, predicts price growth over the next four weeks:
Weekly chart XRP/USDT. Source: X
CryptoGeek reports on the collaboration between American Express and Ripple:
“Breaking news: American Express confirms its partnership with #Ripple, announcing the acceptance of $XRP as a means of payment transactions. Ripple Labs has officially acknowledged that American Express is using $XRP on the RippleNet system.”
XRP Forecast: What will happen after the breakdown?
Furthermore, on the daily timeframe (in contrast to the decidedly bearish weekly trend), XRP appears to be approaching a bottom. This is due to the price nearing the intersection of multiple support levels.
Since November 2023, the token has been descending within a parallel channel. Currently, the price is approaching the horizontal support area at $0.47, which is 7% below its current levels. As this area is likely to converge with the channel support line, it presents a probable level for a bottom formation.
The daily RSI also indicates bullish divergence, which occurs when a price decline is accompanied by strengthening momentum. This often signals upcoming bullish trend reversals.
Therefore, the most likely forecast suggests that Ripple will continue to decline by another 7% until it reaches the confluence of the aforementioned support levels, at which point a rebound is anticipated.
Source: TradingView
If XRP manages to recover above the $0.55 horizontal area, it could trigger a 22% rally towards the channel resistance line at $0.61.
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