while XRP price failed to clear an important horizontal resistance area and subsequently declined, and is currently trying to find short-term support.
Despite the failure to break out, XRP price has established a bullish pattern and is likely to start a short-term reversal. The reaction and the $0.52 area will be crucial to determine the future direction.
Ripple price resumes falling after rejection
XRP price made three failed attempts to move above the long-term $0.53 resistance since September 2022 as the area had been in place for almost a year; Whether the price is moving up or down it can determine the future trend.
Therefore, a break above it is expected to accelerate the rate of increase, while a rejection may cause a sharp decline.
After that, XRP price may have followed an ascending support line since the beginning of the year. When combined with the $0.53 area, this creates an ascending triangle, which is considered a bullish pattern.
This means that its final exit will be the most likely scenario.
However, the Relative Strength Index (RSI) shows the potential for a downtrend. Traders rely on the RSI as a measure of momentum to determine whether the market is overbought or sold, which helps them decide whether to accumulate or sell an asset.
The bulls have the upper hand when the RSI reading crosses 50, and the trend is bullish. On the contrary, a drop in the RSI below 50 reflects the situation. Although the RSI is above 50, it is showing a decline, which indicates weakness.
Furthermore, there is a bearish divergence in the RSI. This is an event in which a decrease in momentum is accompanied by an increase in price. It is often a precursor to downward movements.
XRP Price Prediction: The Triple Bottom could trigger bullish momentum
According to the short-term six-hour time frame technical analysis, the price of XRP is going up in the short term.
This bullish prediction is based on price action and the establishment of a short-term triple bottom, which is a bullish pattern. The triple bottom also features long lower wicks (green symbol) and occurs within a horizontal support area. Hence, it is likely to lead to a bullish trend reversal.
After the recent rebound, XRP price broke out from the descending resistance line. This confirms that the short-term trend is to the upside and will be followed by a rise. The now debunked news that Gary Gensler has resigned as chairman of the SEC likely helped the surge.
The nearest resistance area is at $0.52, which was created by the 0.618 Fibonacci retracement resistance level. This is near the long-term $0.53 resistance area identified earlier. Therefore, a hack from one is likely to lead to a hack from the other.
Therefore, XRP’s future price prediction will be determined by whether XRP crosses $0.52 or declines. In the event of a breakout, the price could quickly rise to $0.65 and beyond.
However, rejection is also likely to cause a breakdown from the ascending support line and a drop to $0.40.
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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.