XRP Price Stabilizes at $0.50 but Future Trend Remains Unclear
Key Takeaways
- The Ripple (XRP) price trades inside a long-term triangle.
- XRP broke down below the $0.55 horizontal support area.
- Can XRP reclaim this area or is more downside likely?
Since the start of the year, the XRP price has traded without any notable volatility. Year to date, XRP has fallen 12% and trades inside the confines of its long-term range. While the price made a breakout attempt on Sept. 28, it was unsuccessful, leading to a sharp drop.
However, the XRP price regained its footing by bouncing at $0.50. Let’s analyze the price movement and see if it can build on this momentum and finally break out.
Long-Term XRP Pattern
The weekly XRP chart shows that the price has traded inside a symmetrical triangle since the start of 2021. The symmetrical triangle is considered a neutral pattern. Therefore, both a breakout and a breakdown are possible.
The XRP price is nearing the end of a pattern, so a decisive movement outside of it is likely. Whether this move is a breakout or a breakdown will determine the future trend’s direction.
Technical indicators also give a neutral outlook. The Relative Strength Index (RSI) is at 50, while the Moving Average Convergence/Divergence (MACD) is at 0.
However, the wave count is bullish. It suggests that XRP is nearing the end of wave B in an A-B-C corrective structure (white). Wave B contains the entire triangle, as evidenced by the sub-wave count (black).
Giving wave C the same length as wave A leads to a high near $2.40, depending on where wave B ends. So, while not decisive, the wave count gives a bullish XRP price trend.
Positive Ripple News
On Oct. 10, Ripple announced the launch of several new features for Ripple Custody. It aims to bring bank-grade custody solutions to financial technology businesses.
These features include AWS Cloud integration, tokenization in the XRP Ledger (XRPL), and transaction screening. The features will also improve the user interface and make the XRPL decentralized exchange (DEX) easier to use.
Ripple was also selected as the winner of the best cross-border payments platform by Juniper Research.
In less positive news, Ripple CEO Brad Garlinghouse expressed his frustration with what he perceives as the Securities and Exchange Commission’s (SEC) overreach. The SEC has filed to assert joint jurisdiction regarding the Bitnomial Exchange’s XRP futures contracts.
More Downside Ahead?
The shorter-term 12-hour chart gives a more bearish price outlook. The price has broken below the $0.55 horizontal resistance area and the middle of an ascending parallel channel.
This suggests that more downside is likely.
Additionally, the entire movement since July may be part of an A-B-C corrective structure. Giving waves A:C the same length leads to a low of $0.46. This would validate a horizontal support area and the channel’s support trend line.
Because of this confluence, the XRP price correction will likely end there, and another upward movement will follow.
Conversely, closing above the $0.55 horizontal area will mean the trend is still bullish. In that case, the XRP price would increase to the channel’s resistance trend line at $0.66.
Rejection is more likely since the RSI is below 50 and the MACD is below 0.
After the short-term correction is over, the XRP price could finally break out from its long-term triangle pattern.
XRP Price Breakout Ahead
The long-term XRP chart suggests that an eventual breakout from the long-term triangle pattern is the most likely future outlook. However, a short-term decline toward the $0.50 area could occur before the price eventually breaks out.
Read More: XRP Price Prediction 2024: XRP Price Analysis
