Ripple (XRP) Price Returns to Key Support – Will It Bounce Back or Breakout?

[ad_1]

Despite a breakout three months ago, Ripple (XRP) price has consolidated near a key horizontal support area.

XRP price fell below this support area today but is currently recovering there. Will it succeed?

Ripple breaks below horizontal support

Looking at the weekly time frame, the price of XRP has been rising since May 2022 with rising support lines. During this period, XRP broke out of key horizontal areas and reached new highs in July 2023.

However, this growth was unsustainable and was followed by a rapid decline in August. This reinforces the importance of support lines.

On January 3, XRP’s sharp decline was also stopped by this support line.

XRP/USDT Weekly Chart | Source: TradingView

When assessing market conditions, traders use the RSI as a momentum indicator to determine whether the market is overbought or oversold and whether to accumulate or sell assets.

If the RSI is above 50 and sloping upward, bulls still have the advantage, but if the index is below 50, the opposite is true. The RSI is 50, which is a sign of a neutral trend.

What do analysts say?

X’s cryptocurrency analysts are positive about future XRP price movements.

RealXRPWhale believes that when XRP price breaks above the descending resistance line, it will surge higher.

XRP/USDT Daily Chart | Source: X

flash notes A symmetrical triangle pattern suggests that a breakout of this pattern could accelerate the rise to $0.85.

XRP Price Prediction: Crash or Rise?

Similar to the weekly time frame, daily time frame technical analysis offers a neutral outlook. This is due to price action and RSI.

Price action shows XRP breaking above the $0.54 horizontal resistance area, forming a symmetrical triangle. However, the price broke below the triangle on January 3, reaffirming the support area (green symbol).

The RSI is below 50, which is a sign of a downtrend. Therefore, future trends can be determined by how XRP price reacts to this area.

XRP/USDT Daily Chart | Source: TradingView

A break below $0.54 could send XRP price down 25% to the next support level at $0.42. On the other hand, a successful rally could lead to a 20% gain and a retest of the $0.67 resistance.

You can check coin prices here.

Disclaimer: This article is for reference only and does not constitute investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.