2023-09-01 16:54:00
The price of Ripple has declined significantly since hitting a yearly high. XRP risks closing below the $0.55 horizontal area
Whether the price of XRP closes below this area or bounces off it will determine the further dynamics of Ripple.
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XRP falls below long-term support
As the results of the technical analysis of the weekly chart show, the picture for the Ripple project token (XRP) is predominantly bearish.
First, the price of XRP bounced off the Fibonacci 0.382 retracement at $0.93 just following hitting a new yearly high. This resulted in the formation of a very long upper wick (red icon), which is considered a sign of bearish pressure.
Secondly, the price has now fallen below the long-term horizontal support area of $0.55. Since the beginning of 2021, this area has alternately acted as both resistance and support. Therefore, a weekly close below it will confirm that the trend is bearish. In this case, the next scenario is likely to be a 40% drop in Ripple to the $0.30 horizontal support area.
Source: TradingView
Finally, the weekly RSI is getting bearish. This momentum indicator has broken above the rising support line (green line) and is now at risk of falling below 50. However, the RSI has yet to close below 50, giving hope for a possible bullish reversal. In this case, the Fibo resistance level of 0.382 will mark an increase of 85% from the current price.
See also: Hearing on SEC lawsuit once morest Ripple will last until April 2024
Will Ripple Fall To Upward Support?
The daily time frame is confirmed by the bearish signals of the weekly chart. Here, the XRP price dropped well below the key $0.54 support zone. Moreover, the price has double tested this area as resistance (red icons).
Meanwhile, the daily RSI is below the 50 level and is declining. Both of these signs indicate a bearish trend.
If the decline continues, an ascending support line will come into play at $0.39. A drawdown to it will be equivalent to a fall of 23% from the current price. Here, Ripple might get temporary relief ahead of the long-term horizontal support area at $0.30.
Source: TradingView
Despite the bearish outlook, an XRP close above the $0.55 horizontal area will invalidate the bearish breakout and confirm that the trend remains bullish. In this case, the most likely scenario is likely to be an 85% rise in price once morest the $0.93 resistance.
Read also: Bitcoin (BTC) on a roller coaster. Will the $25,000 mark hold up?
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