The XRP price could be close to the end of its short-term correction. Whether it bounces at the support line of the current pattern will determine if the correction is complete.
There are no recent Ripple news regarding the Ripple vs SEC lawsuit, and the price has lost an important horizontal level. However, Ripple Labs tweeted their 2023 crypto and blockchain predictions. In it, they have a positive outlook for non-fungible tokens (NFTs), central bank digital currencies (CBDCs), and financial institutions investment in crypto.
XRP Price Loses Crucial Level
The XRP price has traded inside a symmetrical triangle since June 2022. Both the resistance and support lines have been validated numerous times. The price recently created a massive bullish hammer candlestick on Jan. 2 (black icon), initiating the current upward movement.
Despite the increase and movement above the $0.380 area, the XRP price failed to break out from the triangle. Rather, it was consistently rejected for a period of nearly one month (red circle). Now, the price decreased below the $0.380 area once more. Moreover, this caused the daily RSI to drop below 50, another bearish sign. Due to the numerous times the digital asset has moved above and below this level, the area cannot confidently be used as support/resistance anymore.
Whether the Ripple price breaks out or down from the triangle can determine the future price trend’s direction. A breakout could take the XRP token toward $0.505 while a breakdown could take it toward its 2021 lows at $0.300.
XRP Price Could Complete Correction Soon
The technical analysis from the short-term three-hour time frame supports the possibility that the price will soon reverse. There are two main reasons for this.
Firstly, the XRP price is trading at a confluence of resistance levels at $0.367. The support is created by the 0.5 Fib retracement support level and the support line of a descending parallel channel.
Secondly, the XRP price might be nearing the end of an A-B-C corrective structure in which waves A:C had a 1:1 ratio.
However, in order for the count to remain valid, the XRP price has to reverse the trend soon. A decisive breakdown from the channel and the 0.618 Fib retracement support level would also cause a breakdown from the long-term channel. As a result, it would invalidate the bullish XRP price forecast and could take the price to $0.300.
To conclude, the most likely XRP price forecast indicates that the bearish decrease will soon reverse, and XRP will make another attempt at breaking out from its triangle. However, a decisive close below $0.360 would invalidate this hypothesis and could lead to a drop to $0.300.
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Source: https://beincrypto.com/dearth-ripple-news-causes-xrp-price-drop/