Can XRP Price Bounce Back?
The XRP (XRP) price is trading above a long-term horizontal support area and ascending support line. Whether it breaks down or bounces will likely determine the direction of the future trend.
The price action from the weekly chart shows that XRP had been decreasing underneath a long-term descending resistance line since April 2021. It made four unsuccessful attempts (red icons) before falling to a low of $0.28.
Afterward, the Ripple price broke out from the line in Sept. 2019. However, it was rejected by the $0.58 resistance area and had been decreasing since.
The most bullish development is currently the fact that the decrease validated the previous resistance line as support (green icon). This is common after breakout.
However, the RSI gives conflicting signs. On the one hand, the bullish divergence trend line is still intact. On the other, the indicator is below 50.
Therefore, whether the XRP coin price breaks out above the $0.58 resistance area or down from the $0.32 support area instead will likely determine the future price prediction.
XRP Price Forecasts: Daily Chart Leaning Bearish
The daily chart shows that the XRP price decreased sharply since Nov. 5. This was more likely due to fallout from the FTX fiasco, rather than any news related to XRP.
The decrease caused a breakdown from the $0.44 support area, which is now expected to act as resistance. The ensuing low validated an ascending support line, in place since June 13.
While the XRP price bounced over the past 24 hours, it failed to create a bullish engulfing candlestick (highlighted). Additionally, the RSI is still below 50, even though it has bounced outside of its oversold territory.
In similar fashion to the weekly chart, whether the Ripple price breaks down from the support line or breaks out from the resistance line will determine the direction of the future trend.
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