The Ripple XRP price has fallen since a key resistance area rejected it on November 13.
The price is approaching a key horizontal resistance area, the reaction to which could determine the future trend.
Ripple Consolidates Above Resistance
The weekly timeframe technical analysis shows that XRP has increased following an ascending support trend line since the start of 2023. While doing so, XRP broke out from a key horizontal resistance area, reaching a new yearly high of $0.93 in July.
However, the XRP price has fallen since, validating the ascending support trend line twice in August and October, respectively (green icons). Despite the drop, XRP trades above the key resistance area and the ascending support trend line.
The Relative Strength Index (RSI) is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. The RSI is currently above 50.
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What Do Analysts Say About the Increase?
Cryptocurrency traders and analysts on X are bullish on the long-term XRP price trend.
CryptoBull and JD are both bullish about the long-term trend. CryptoBull stated that:
#XRP projected prices are $4.20, $7.20 and $470 based on past breakouts. $XRP had a major breakout at the end of every triangle and we are about to finish the fourth triangle. Do you believe?
JD also tweeted a similar long-term symmetrical triangle, stating that the breakout from it will greatly accelerate the XRP price rate of increase.
RealXRPWhale is bullish on the short-term trend because of a bullish retest of a key horizontal area.
Read more: (XRP) Ripple Price Predictions
XRP Price Prediction: Will Price Ever Reach $1?
The daily timeframe analysis gives a mixed outlook.
On the bullish side, the XRP price broke out from a descending resistance trend line on October 19. Before the breakout, the trend line stood for 98 days.
However, the 0.618 Fib retracement resistance level rejected the price on November 13, ending the increase and creating a long upper wick (red icon), a sign of selling pressure. XRP has fallen since and nearly returned to the $0.55 horizontal support area.
The daily RSI also gives a mixed reading. The indicator is falling and is below 50. However, it just reached the bullish divergence trend line (green), which led to the entire increase. Since the trend line is still intact, it can be hypothesized that the upward movement is still ongoing.
Due to these mixed readings, the reaction to the $0.55 area will determine the future XRP trend. A strong XRP price bounce can lead to a 60% increase to the next resistance at $0.94.
On the other hand, a breakdown from the $0.55 area can trigger a 20% XRP price decrease to the next closest support at $0.48.
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Disclaimer
In line with the 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, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Source: https://beincrypto.com/future-xrp-price-trend-area/