Ripple (XRP) has not yet reached the end of its long-standing battle with the SEC, and a collective appeal process is anticipated. Investors are moving away from optimism about repeating previous peaks with the increasing circulating supply. So, what does the short-term price outlook indicate? What does the recent break tell us?
Will Ripple (XRP) Fall?
XRP Coin price was finding buyers at $0.503 at the time of writing. On the weekly chart, the price fell below the long-term support trend line last week. The support line, which had been in place for 450 days, was an important threshold for price increases. We had discussed how critical such breaks from long-term structures can be.
In fact, we were discussing that before the last quarter of the previous year, a break from long-term downward trends could lead to significant recoveries across altcoins. And that’s what happened.
Last week’s close represents the first support break below the trend line since its formation in October 2022. Additionally, this break caused XRP Coin price to lose a significant horizontal support.
The weekly RSI confirms the break and is below the neutral zone. This indicates that the XRP Coin price may continue to fall.
XRP Coin Price Prediction
CryptoGeek confirmed the collaboration between American Express and Ripple. American Express is utilizing the RippleNet System for payment transactions. However, this development did not bring much positive change to the price.
Although there is a clear downward trend on the weekly chart, daily chart readings suggest that the price may soon find its bottom. The XRP Coin price, which has fallen into a decreasing parallel channel since November, is approaching $0.47. This area could be a reasonable level for the bottom as it will soon coincide with the channel’s support trend line.
In addition, contrary to the weekly RSI, a bullish divergence is forming on the daily RSI. In short, the most likely scenario in this case is a bounce in price after a 7% drop. Despite downward predictions, if we start seeing closes above $0.55 on the daily chart, this could initiate a recovery to the $0.61 resistance trend line with the reclaiming of the horizontal support area.
