The Ripple XRP price created a massive bullish candlestick on March 21, breaking out from a long-term structure in the process.
The XRP price had traded inside a symmetrical triangle since June 2022. Throughout this period, the pattern’s resistance and support lines have been validated numerous times. On March 21, the price broke out from the triangle. It created a massive bullish candlestick in the next 24 hours, leading to a new yearly high of $0.49.
The increase had two other bullish signs: a breakout from the 0.5 Fib retracement resistance level at $0.43, and a daily RSI breakout from a bearish divergence trend line (green line).
The $0.43 Fib level is expected to provide support in the near future. On the other hand, the $0.51 horizontal area is expected to provide resistance.
It is worth mentioning that there are no recent developments regarding the Securities and Exchange Commission (SEC) vs Ripple Labs case.
What Does Future Hold for Ripple XRP Price?
The technical analysis from the six-hour time frame shows that the XRP price could be trading inside an ascending parallel channel. Such channels usually contain corrective structures. The Ripple price was rejected (red icon) by its resistance line yesterday.
Moreover, both increases inside the channel have a 1:1 ratio. This is common in A-B-C corrective structures. As a result, whether the Ripple price breaks out or gets rejected from the channel could determine the future trend’s direction.
Long-Term Outlook Supports Increase
Finally, the weekly time frame supports the continuation of the long-term upward movement. While the weekly close has not been reached yet, the digital asset will almost certainly break out from a resistance line in place since April 2021, and the weekly RSI will move above 50.
So, this would mean that the Ripple price will break out from the ascending parallel channel. Hence, it would confirm the trend as bullish. Therefore, it could lead to a breakout toward $0.62. On the other hand, a close below the resistance line would negate this bullish outlook and could cause a drop to $0.30.
To conclude, the most likely XRP token price forecast is a breakout from the ascending parallel channel and an increase to $0.62. While a breakdown from the channel would invalidate this possibility and could lead to a drop to $0.30.
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Source: https://beincrypto.com/ripple-xrp-price-breaks-out-long-term-pattern/