while XRP price failed to clear an important horizontal resistance area and subsequently declinedHe. She It is currently trading within a short term bearish trend.
Readings in both the long- and short-term timeframes support the possibility of more downside before the eventual upside reversal.
Ripple price is at risk of collapsing from long-term support
XRP price has been trading below the $0.53 horizontal area since May 2022, when it initially fell below it. Since then, it has made 3 failed hack attempts (red icon), the last one in June 2023. The price has been declining since then.
However, XRP has also followed an ascending support line since the beginning of the year. So, the line is in place for 190 days.
But the price of XRP is in danger of crashing. While it has already fallen below the line, it has not yet reached a weekly close below it. Doing so will confirm the start of a downtrend.
The Relative Strength Index (RSI) is giving a mixed reading. Traders use the RSI as a momentum indicator to determine whether the market is overbought or oversold, which helps in the decision-making process regarding buying or selling an asset.
When the RSI reading exceeds 50 and the trend is up, the advantage lies with the bulls. Conversely, if the RSI falls below 50, the situation reverses. Although the RSI is above 50, it is showing a decline, which indicates a weak trend.
Additionally, there is a bearish divergence observed in the RSI. This indicates a scenario in which a decrease in momentum is accompanied by an increase in price. It often serves as a precursor to downward movements.
XRP Price Prediction: A bearish pattern could cause a crash
According to the technical analysis on the short-term six-hour time frame, XRP price is about to break below the long-term ascending support line identified earlier.
This bearish prediction is based on price action. The price has been trading inside the descending triangle since June 16th. The descending triangle is a bearish pattern, which means that a final breakdown is expected from it.
Besides being a bearish pattern, the triangle appears after a downward movement. This also supports the possibility of an eventual collapse of the XRP price.
If that happens, the next closest support area will be at $0.44.
Although a bearish XRP price is expected, a close above the triangle resistance line would mean that the trend is still bullish.
In this case, XRP could quickly move to the next resistance at $0.52.
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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.