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XRP Bullish Streak Takes a Hit — Can It Still Surge to $0.55?

Published October 9, 2023 11:03 AM
Nikola Lazic
Published October 9, 2023 11:03 AM

Key Takeaways

  • XRP decreased by 19% from its October 4 high.
  • It also reached its key support at around $0.50.
  • Two possibilities ahead but the likelihood of a bearish scenario is higher.

The price of XRP exhibited a noteworthy journey starting from September 11, when it reached a low of $0.47, marking a subsequent recovery of 19%. It peaked at $0.54 on October 4 but soon experienced a sharp downturn, currently resting at $0.487.

The intriguing question is whether the price initiated a broader uptrend since September 11, with the present decline possibly representing a corrective phase. Will we witness a resurgence, propelling XRP beyond $0.55 and into uncharted territory, or is this descent indicative of a more extended bearish trend?

Price Analysis 

XRP achieved its yearly zenith of $0.95 on July 13, following a substantial spike from $0.468 on the same day. Prior to that, it steadily ascended since June 18, 2022, when it bottomed out at $0.28. An examination of the 4-hour chart reveals that the price currently navigates within an ascending channel, with the support level gaining significant attention and serving as its current focal point.

Significant support reached
Significant support reached

The RSI is signaling oversold conditions, registering at 27% today. However, it’s worth noting that we’ve observed even lower RSI values on September 11 and August 17 without significant subsequent price surges. Given the substantial decline from its peak in July and its current position on the ascending support, the question arises: Is a rebound now more likely in the offing?

Bearish price action seen
Bearish price action started

Zooming in on the hourly chart and delving deeper into the wave structure, it becomes apparent that since September 11, the price has likely undergone a corrective increase following an ABC pattern. Furthermore, the decline that began on October 4 appears to exhibit an impulsive nature, with the momentum of the downturn intensifying since October 7.

Wave 4 to Anticipate a Downward Move

Should this indeed be another five-wave movement to the downside, it’s plausible that we’ve either witnessed the completion or near-completion of wave 3. Subsequently, we would anticipate wave 4 to enter a consolidation phase before initiating another downward move. Ultimately, wave 5 is expected to unfold, potentially driving the price even lower than the levels observed on September 11, or revisiting the approximate low of $0.46.

Support needs to hold
Support needs to be confirmed

On the flip side, examining the period from September 11 to September 20, we can discern an initial five-wave upward impulse, followed by subsequent price action forming a corrective WXY pattern of a lower degree. This correction may establish a higher support level, potentially paving the way for another substantial uptrend in the near future.

In this bullish scenario, it’s imperative for the price to maintain levels above the critical 0.618 Fibonacci level at $0.50 while showcasing immediate positive indicators above the ascending support level. According to this perspective, wave 3 is anticipated to commence shortly, aiming for a higher high, potentially targeting $0.62 and possibly extending further if this manifests as a five-wave pattern.

Conclusion

XRP has grappled with maintaining the bullish momentum it acquired since September 11 and currently finds itself once again resting on its pivotal ascending support level. In this juncture, two potential scenarios lie ahead, with the bearish outlook currently holding greater probability.

However, the pivotal determinant for future price expectations hinges on the developments around the current price levels, approximately at $0.50. Should this level prove resilient and lead to a resurgence in price, it could pave the way for a sustained uptrend, potentially surpassing the $0.55 mark.

Conversely, should the price continue its descent, it would likely suggest that the ascent from September 11 was corrective in nature, signaling a continuation of the downward trajectory initiated on July 14, potentially leading to further lows.

 Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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