XRP price fell significantly on April 19, as it was rejected by a crucial resistance area. However, there is still hope for a possible reversal as long as the price bottoms out soon.
XRP price rose after breaking out of a descending resistance line on March 21st. This led to a new annual high of $0.585 on March 29. However, the ensuing drop puts the bullish structure at risk of invalidation.
Ripple price is falling below the important resistance level
XRP price has been moving lower since XRP reached its yearly high of $0.585 on March 29. And although it looks like it has cleared the $0.530 resistance area, the long upper wick indicates weakness and means that the area is now acting as resistance again.
After creating a lower top on April 18, the digital asset fell again and collapsed from the $0.485 horizontal area the next day. It validated the area as resistance on April 24, creating another long upper wick (symbol red) over the next 24 hours.
These wicks are signs of selling pressure because the buyers were unable to sustain the price. Instead, the sellers took over and pushed the price below the opening of the period.
While there is no imminent news regarding the Ripple vs Securities and Exchange Commission (SEC) case, it is worth noting that a 2018 lecture by SEC Chairman Gary Gensler stated that cryptocurrencies are not securities.
This directly contradicts the allegations made in the ongoing case.
XRP Price Prediction: Wave Count Expects 50% Increase
A price analysis based on the six-hour price action indicates a bullish XRP price prediction due to the wave count. Technical analysts use Elliott Wave theory to identify recurring price patterns over the long term and investor psychology to identify market trends.
The theory suggests that the current price of XRP has completed the fourth wave of the five ascending wave, which is a positive sign for its future price.
The forecast suggests that XRP could move above the $0.530 resistance. The most likely target is between $0.673 and $0.722, which is found by the 1.61 Fibonacci extension of the fourth wave (black) and the length of the first and third waves projected to the bottom of the fourth wave (white).
Fibonacci retracement levels indicate that after a significant price move in one direction, the price will partially retrace or return to the previous price level before continuing in its original direction. This principle can be used to determine the peak of possible future upward movements.
Looking at the above indications, it can be inferred that if XRP price can move above the $0.485 area, it may rise to $0.530 again. However, if it is rejected, a drop to $0.425 is to be expected.
Moreover, a drop below the first wave high at $0.430 will invalidate the bullish XRP price prediction. In this case, the XRP price could drop to $0.360.
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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.