Double Bottom Leads Relief Rally

The Ripple (XRP) price has created a short-term bullish pattern above an ascending support line. Nevertheless, the long-term trend has yet to be determined.

Between June and Aug. 2022, the XRP price bounced several times (green circle) above the long-term $0.32 horizontal support area. This catalyzed an upward movement that broke out above a long-term descending resistance line in the beginning of Sept. The line had been in place since the 2021 high of $1.96. 

Afterward, the XRP price validated the line as support in Nov. (green icon). This coincided with another touch of the $0.32 support area. The decrease was felt throughout the crypto market.

While this price movement is considered a bullish development, the weekly RSI is still below 50, failing to confirm the legitimacy of the breakout. 

In any case, the closest resistance area is at an average price of $0.56. A weekly close above it would confirm the bullish trend, while a bearish close below the $0.32 area could trigger another sharp fall.

XRP Price Finds Support, but Will it Hold?

The daily time frame price action shows that the XRP price fell at an accelerated rate between Nov. 5 and 9. It broke down from the $0.44 area, and XRP reached a low of $0.39.

The low validated an ascending support line that has been in place since June 13. After returning to it on Nov. 4, the XRP price created a bullish engulfing candlestick (green icon). It has been increasing since, despite a lack of positive XRP news. 

The $0.44 area will likely act as resistance if the increase continues. Similarly, the 50 line (red icon) is expected to provide resistance to the RSI if the increase occurs. As a result, the short-term XRP price prediction is bullish.

Short-Term Bounce Can Lead to $0.44

The two-hour chart is bullish and supports the continuation of the increase. The double bottom pattern between Nov. 9 and 14 has been combined with bullish divergence in the RSI. Afterward, it led to a breakout from a short-term descending resistance line, which was the validated as support (green icon).

While the XRP price has not increased substantially over the past 24 hours, the rate of increase could accelerate soon. This would also take the RSI above 50.

The most likely target for the top of this move is close to $0.44. Besides being a long-term horizontal resistance area, it is also the 0.618 Fib retracement resistance level (white).

A fall below the Nov. 14 low of $0.32 would invalidate the short-term bullish Ripple price prediction.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer: BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.