The price of Ripple (XRP) began to rise after reaching a local bottom on August 17 and formed a higher low by September 11.
Although the asset managed to break above the descending resistance line, it is still trading below the important horizontal resistance area of $0.55.
XRP confirmed $0.55 area as resistance
Technical analysis of the daily timeframe shows that on August 17, a very long lower wick appeared on the XRP chart (it is marked with a green icon on the chart)which is considered a sign of pressure from buyers.
After forming a higher low on September 11, Ripple broke above the descending resistance line, leading to a high of $0.55 on September 29.
The subsequent decline (it is marked with a red icon on the chart) confirmed this area as resistance.
Source: TradingView
On October 2, XRP formed a bullish candle that reversed all previous declines. However, the price of the token was never able to rise and consolidate above $0.55.
Ripple price forecast: RSI and wave chart hint at growth
Wave calculation and daily relative strength index (RSI) give a bullish outlook, supporting the possibility of a breakout.
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XRP’s movement since bottoming on August 17th may represent an ABC structure (it is marked in black on the graph). It is characterized by a three-wave decline in what is likely wave B.
Giving waves A:C a 1:1 ratio would result in a high of $0.58. If wave C continues to 1.61 the length of wave A, then the price could rise by 25% and reach $0.66.
The daily RSI is above 50 and moving up. In addition, the breakout was preceded by the appearance of a bullish divergence (it is marked with a green line on the graph).
Source: TradingView
Despite the positive outlook, another deviation of Ripple from the $0.55 area would mean that the trend remains bearish. In this case, the price of XRP could decline by 20% towards the $0.41 support area.
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2023-10-08 10:42:00
#Ripple #XRP #break
