The bulls are slowly turning in favour of XRP as the asset has been withstanding huge bearish pressure for quite a long time. The asset is among the cryptos which failed to mark a new high during the recent rally and hence the market sentiments are expected to coil up in the favour of the asset shortly.
Considering the long-term, weekly chart, the XRP price is again heading lower to test the crucial trend line for the first time in the last 4 years. Previously, the price tested these levels and surged extremely high with a rebound to mark highs above $3.5. Now, when a similar price movement is expected to occur, a rebound may raise the price above $4 to mark new highs.
It has to be noticed that the XRP price had dropped to the lowest FIB levels at 0, and after a brief consolidation, the prices rose remarkably. However, similar price movements have been noticed as the price is again heading towards the lower FIB levels. Therefore, following a bearish trend, the XRP price is expected to drop hard and reach the trend line, somewhere in the first few days of 2023.
Interestingly, it coincides with the dates of the final ruling in the Ripple vs SEC case, which may induce significant bullish momentum. Moreover, if the ruling turns in favour of Ripple, the probability of relisting XRP on the US-based exchanges may rise, which may in turn impact the XRP price positively.
However, after reaching the highs, the price is primed to witness a major dump that could engulf more than 80% of the profit gained, pushing the asset into a deep and extended bearish well.