At the time of writing, the price of XRP has reached $0.4963 and the volume is up 3.12% since the past 24 hours. Here it is important to note that the price is still below the $0.56 horizontal support area that has held significant value in the past. This level is important since when XRP’s price approached or dropped to this level, it often found buying interest, leading to price rebounds or reversals. With the price below this support level, the current outlook for XRP is bearish.
XRP’s Relative Strength Index (RSI) Analysis:
RSI plays a significant role in analyzing market momentum here, since when the RSI is above 50 and on the rise, it indicates that buyers are currently in control. This suggests an uptrend in the market and the possibility of favorable buying opportunities.
Conversely, when the RSI falls below 50 and continues to decline, it signifies that sellers have gained the upper hand. This signals a downtrend in the market and the potential for profitable selling opportunities.
Currently, the RSI stands at 32.25, which is below 50 and is decreasing, which are both indicative of a bearish trend. Additionally, the RSI has broken down from an ascending support line, providing yet another signal that the prevailing trend is bearish.
Elliott Wave Theory and XRP’s Long-Term Trend:
Here, we have implemented Elliott Wave Theory as it is crucial in technical analysis and attempts to predict future price movements in financial markets by identifying recurring patterns in price charts. Developed by Ralph Nelson Elliott in the 1930s, the theory is based on the idea that market prices move in a series of waves or cycles, and these waves follow specific patterns that can be analyzed and used to make predictions about future price movements.
It is important to remember that while the immediate price scenario of XRP leans towards a continued decrease, the long-term trend’s direction remains uncertain. This ambiguity stems from the presence of two valid wave counts at play.
One scenario, the bearish count, suggests that Ripple’s price has completed an A-B-C corrective structure. If this count holds true, it implies that the price will persist in its descent, potentially breaking below its 2022 lows at $0.29. On the other hand, the bullish count proposes that XRP is currently in wave four of a five-wave upward movement. This upward movement has taken the form of a leading, expanding diagonal, explaining the overlap between waves four and one.
Should the bullish count prove accurate, the price is anticipated to rebound at a long-term ascending support line at $0.40 and subsequently ascend towards a long-term ascending resistance line at $1.25. Consequently, the most plausible XRP price prediction points toward a continued decline, targeting the nearest support at $0.40. The pivotal factor in determining the future trend’s course will be whether the price experiences a rebound upon reaching this level.
The uncertainty in the cryptocurrency market continues for now. In times like these, monitoring the key support and resistance level is crucial.
XRP Pricing (23 August 2023)
XRP recently experienced a significant sell-off, hitting a low of $0.4226, marking a substantial 54.5% loss from its peak of $0.938 over the past six weeks. Currently priced at $0.5178 with a market cap of $27.3 billion, XRP has retraced to pre-SEC victory rally levels. It once found support at the 78.6% Fibonacci retracement level, but now struggles to maintain value. A daily price chart shows rejection at $0.422 and the 78.6% FIB level, indicating potential accumulation and a 10% pullback. The XRP price trajectory reversed after hitting $0.5582, highlighting persistent selling pressure and a potential bearish crossover in EMAs. The MACD confirms a downtrend sentiment. While further declines are possible, the $0.422 support level could lead to a bullish recovery, potentially pushing XRP to $0.668 if the previous peak at $0.5948 is breached. Time will tell how things unfold.
Ripple (XRP) Broke 700-day Resistance (6 August 2023)
On 6 August 2023, after a prolonged period of resistance lasting 700 days, Ripple’s XRP price has finally broken out, reaching a yearly high of $0.94 last month. This high follows the win of Ripple (XRP) against the U.S. Securities and Exchange Commission (SEC). Nevertheless, the price has retraced since then, affirming the importance of the $0.90 resistance level. As of the current date, XRP is trading at $0.72 according to CoinMarketCap.
Despite the recent retracement, the long-term outlook for XRP remains positive due to the successful breakout. In the short-term, there are indications of a potential bottom forming. If XRP manages to maintain its bullish momentum and overcome the $0.90 resistance level, it could target $1.10. However, traders should closely monitor the price movement around the $0.64 support area to assess whether the bullish trend will continue or if a bearish scenario could unfold.