Will the XRP Price Continue its Bounce? | Credit: Hameem Sarwar
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Key Takeaways
The XRP price formed a massive long lower wick in the weekly timeframe.
XRP prevented a breakdown from the long-term horizontal support at $2.
Will the XRP price prevent a breakdown or stay above this support?
The XRP price has declined since hitting its all-time high of $3.66 in July.
On Oct. 11, the XRP price fell to a low of $1.25, but bounced, creating a massive long lower wick.
Although the XRP price recovered, it has fallen again today and risks a breakdown below $2 once more.
With that in mind, let’s examine the price movement and determine whether a breakdown awaits or if the XRP price can mount a bullish trend reversal.
XRP Price Prevents Breakdown
The XRP price has fallen since hitting an all-time high of $3.66 in July.
The downward movement was gradual initially. However, the XRP price accelerated its decline last week, falling to a low of $1.25 in October.
While the decline was substantial, taking XRP well below the long-term horizontal support at $2, the price bounced afterward, creating a massive lower wick.
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Currently, the RSI is below 50 and the MACD has made a bearish cross (black circle), reinforcing the hypothesis that the XRP price trend is bearish.
Because of these bearish readings, the most likely future XRP prediction is a price decrease toward $2 and a potential breakdown.
Why is XRP Going Down?
The XRP prediction appears even worse when considering the price movement since 2018.
There are multiple reasons for this. Firstly, the XRP price has deviated below the $2.85 horizontal resistance area, which acted as the all-time high in 2018
Since the deviation occurred at a 7-year resistance level, the entire long-term trend may have ended.
The wave count aligns, showing that the XRP price has completed an A-B-C corrective structure (green) since 2020.
Wave C had 1.61 times the length of wave one, making it likely that the structure is over.
Finally, momentum indicators give a decisive bearish signal for the XRP price. The RSI has fallen below 50 after hitting overbought territory only three times before.
Each time, it led to the beginning of a long-term bearish trend, confirmed by a bearish cross in the weekly MACD.
Since these have happened recently, the XRP price has likely begun a bearish trend reversal.
Difficult End of Year
XRP shows apparent weakness after losing momentum from its all-time high, with technical indicators signaling more downside pressure.
The long lower wick at $1.25 temporarily saved it from a complete breakdown, but the bearish RSI and MACD suggest sellers remain in control.
Historical resistance levels and wave count analysis indicate that a long corrective cycle is nearing completion.
Unless XRP can reclaim key support convincingly, the most likely outcome is a sustained bearish trend below $2.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
