Ripple (XRP) price is currently consolidating below a key resistance area and trading within a neutral pattern. There is a possibility of an explosion soon.
According to daily time frame technical analysis, XRP price has been consolidating since hitting yearly highs on March 29. This consolidation occurred after the price fell back below the resistance area. Resistance is at $0.530. After reversing on April 3, the price was rejected again and made a lower high (red symbol) on April 11.
Although the daily RSI has not formed any bearish divergence and remains above the 50 level, it is falling, thus providing mixed signals.
If the cryptocurrency manages to break out, it could touch the next long-term resistance at $0.650. Conversely, if the price is rejected, it could drop to the nearest support at $0.425.
XRP/USDT daily chart | Source: TradingView
Will XRP explode?
After a closer analysis of XRP price history and wave numbers on the 12-hour time frame, it appears that the price is currently in wave four (white) of a five-wave rally. This is a bullish sign for the future. This shows that the price can break the $0.525 resistance area and move towards $0.650.
The type of structures created in the fourth wave will determine future trends. Currently, the most likely formation to complete the correction is the short-term symmetrical triangle. Ripple price bounced off the intersection of the triangle support line and the 0.382 Fibonacci retracement support (white) on April 3.
So, this could be the bottom of the correction, with a breakout coming soon. The pendulum motion within the triangle supports this. Today, XRP price is approaching the end of the triangle, indicating that decisive action is expected.
Even a breakout down from the triangle would not invalidate the bullish structure, as it would mean that the price could rebound from the 0.5 Fibonacci level to $0.466. However, this scenario will be invalidated if the price breaks below the swing high of wave 1 at $0.433 (red line). After that, XRP price might drop to the $0.350 support level.
XRP/USDT 12-hour chart | Source: TradingView
In conclusion, the most likely XRP price prediction is a rally towards the $0.650 resistance area. However, a break below $0.433 could trigger a decline towards $0.350.
You can see the token price here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should do their research carefully before making a decision. We are not responsible for your investment decisions.
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