XRP price has been trading inside a symmetrical triangle pattern over the past month. A decisive movement outside of it will likely determine the trend’s direction. At the current time, a bullish breakout seems more likely.
Ripple price has been decreasing below a descending resistance line since April 2021, when it reached a high of $1.97. reaching a local top of $1.97 in April 2021. XRP price made four unsuccessful attempts at breaking out (red icon) before falling to a minimum price of $0.29 in June 2022.
Afterward, the XRP price began an upward movement and broke out from the line on Sept. 18. Furthermore, the weekly RSI broke out from its bearish divergence trendline (green) and moved above 50. These are both considered signs of a bullish trend and provide legitimacy to the breakout.
The main resistance area is at $0.58. This is a crucial horizontal level that had previously acted as support between May 2021-2022. So, the area is now expected to provide resistance.
Ripple price weekly close above this area would be a very strong signal that a bullish reversal is in place. When combined with the weekly RSI movement, it could confirm the bullish trend reversal.
It is also worth mentioning that XRP news about the ongoing Ripple vs SEC lawsuit could have a significant effect on the XRP price, depending on its conclusion.
XRP Price Prediction: Breakout or Breakdown?
The technical analysis for the short-term daily price chart shows that the XRP price has created a symmetrical triangle, which is considered a neutral pattern. However, since the triangle is transpiring after an upward movement, a breakout from it would be the most likely scenario. The count inside the triangle is given in white.
While Ripple price movement supports a breakout, the daily RSI is neutral since it is trading right at the 50 line (red circle). A decrease below the wave C low of $0.42 (red line) would invalidate the bullish XRP price forecast and suggest that a decrease toward $0.38 could occur.
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