XRP price broke through the 700-day resistance line and peaked at a yearly high of $0.94. However, the price has since declined, validating the $0.90 resistance area.
While the long-term trend is bullish due to the breach above, the short-term trend is still hesitating. Thus, another final drop could occur before the price regains stability.
XRP price is facing rejection despite the long-term breakout
Analysis of the weekly time frame for XRP indicates a positive outlook. This is primarily due to the breakout from the 700-day descending resistance line. Breakouts from such long-term structures often result in large moves in the opposite direction.
After the breakout, XRP crossed the $0.54 horizontal area, forming a bullish candle (green icon). After that, the price reached the next resistance level at $0.90 but faced rejection in the same week (red icon). At present, XRP is trading between these two levels.
The Weekly Relative Strength Index (RSI) supports the possibility of a continuation of the upside. Traders use the RSI as a momentum indicator to assess whether the market is overbought or oversold and to make decisions about whether to accumulate or sell an asset.
Since the RSI reading is above 50 and rising, this indicates an uptrend, which indicates that the bulls still have an advantage in the market.
XRP Price Prediction: Where Did the Wave Count Predict the Bottom Price?
Technical analysis from the short-term six-hour time frame also provides a bullish outlook. The main reason for this is the number of waves.
Technical analysts use the Elliott Wave theory as a way to identify long-term recurring price patterns and investor psychology, which helps them determine the direction of a trend.
The number of most probable waves indicates that the XRP price is currently in the fourth wave of a five (white) wave increase. This means that the rate of increase is expected to accelerate towards $1 after the correction.
The most likely area for a fourth wave bottom is $0.64. The area is created by the convergence of support levels, which is the Fibonacci 0.618 retracement support level and the previous ascending parallel channel. A strong bounce at this level will confirm that the fifth wave has started.
Despite the bullish XRP price prediction, a drop below the top of the first wave at $0.56 (red line) would mean the trend is bearish. In this case, the price of XRP is expected to drop to $0.40.
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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.
