Markets

Is Ripple (XRP) Price Set To Collapse Or Collapse?

XRP price is trading at the middle line of a long term trend. Whether it breaks down or rebounds will determine the future direction.

XRP price has been declining since it rejected the channel resistance line on March 29. A breakdown from the center line of the channel will endanger the entire bullish structure and the previous upward move.

Ripple price is falling below the important resistance level

XRP price has been trading inside a long-term ascending parallel channel since June 2022. A bullish parallel channel is a pattern that involves price bouncing between parallel support and resistance lines.

This pattern is usually considered bearish, indicating that a breakdown is the most likely outcome.

The channel resistance line rejected the price on March 29 (red icon), and started the current downward movement. Shortly thereafter, it dropped below the $0.53 horizontal area and proved to be resistance (red icons).

Both are considered bearish signals and often lead to downward movements. Currently, digital assets are trading just above the center line of the channel. Whether it rebounds or breaks down can determine the future trend.

XRP/USDT daily chart. source: TradingView

In addition, the Relative Strength Index (RSI) is at a crucial level. When assessing market conditions, traders use the RSI as a momentum indicator to determine whether the market is overbought or oversold and whether they should accumulate or sell an asset.

If the RSI reading is above 50 and the trend is up, the bulls still have the advantage, but if the reading is below 50, the opposite is true. The indicator is right at the 50 line and at an upward divergence trend line (green line). Therefore, whether the indicator bounces or breaks can determine the future trend.

XRP Price Prediction: The wave count still provides bullish hope

The short-term wave count from the daily timeframe is still providing an opportunity for a bullish outlook. To determine the direction of a trend, technical analysts use the Elliott Wave theory, which involves studying long-term recurring price patterns and investor psychology.

The number of waves indicates that XRP price has just started the fifth and final wave of an upward movement. If this is correct, the most likely target to be reached is between $0.67 and $0.72.

The 1.61 Fibonacci extension of wave four (black) and waves one and three (white) provide this target.

Fibonacci retracement levels work on the principle that after a significant price change in one direction occurs, the price will partially correct or revisit the previous price level before resuming in its original direction.

In addition, they can be employed to determine the highest point of future upward movements.

XRP price prediction
XRP/USDT daily chart. source: TradingView

However, a drop below the first wave high (red line) at $0.430 will invalidate the bullish XRP price prediction. If this happens, a drop in the price of XRP to $0.360 is likely to be the outlook.

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Disclaimer

In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.

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