While Ripple’s XRP price failed to clear a crucial horizontal resistance area and fell afterward, it is currently trading inside a short-term bearish pattern.
Readings in both long- and short-term time frames support the possibility of more downside before an eventual bullish trend reversal.
Ripple Price at Risk of Breakdown From Long-Term Support
The XRP price has traded below the $0.53 horizontal area since May 2022, when it initially broke down below it. Since then, it has made three unsuccessful breakout attempts (red icon), the most recent in June 2023. The price has fallen since.
However, XRP has also followed an ascending support line since the beginning of the year. So, the line has been in place for 190 days.
But, the XRP price is at risk of breaking down. While it has already decreased below the line, it has not yet reached a weekly close below it. Doing so would confirm the beginning of a bearish trend.
The Relative Strength Index (RSI) gives a mixed reading. Traders utilize the RSI as a momentum indicator to determine if a market is overbought or oversold, assisting in their decision-making process regarding buying or selling an asset.
When the RSI reading exceeds 50 and the trend upward, the bulls’ advantage lies. Conversely, if the RSI falls below 50, the situation reverses. Despite the RSI being above 50, it shows a decline, suggesting a weakening trend.
Additionally, there is a bearish divergence observed in the RSI. This refers to a scenario in which a decrease in momentum accompanies an increase in price. It often serves as a precursor to downward movements.
XRP Price Prediction: Bearish Pattern Can Cause Breakdown
According to technical analysis of the short-term six-hour time frame, the price of XRP will soon break down from the previously outlined long-term ascending support line.
This bearish prediction is based on the price action. The price has traded inside a descending triangle since June 16. The descending triangle is considered a bearish pattern, meaning that an eventual breakdown from it is expected.
Besides being a bearish pattern, the triangle transpires after a downward movement. This further supports the possibility that the XRP price will eventually break down.
If it does, the next closest support area will be at $0.44.
Despite this bearish XRP price prediction, a close above the triangle’s resistance line will mean that the trend is still bullish.
In that case, XRP can quickly move to the next resistance at $0.52.
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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/xrp-price-bearish-support-line-weakens/