XRP price dropped sharply on April 19 after being rejected by a key resistance area. However, as long as the price bottoms out soon, a reversal is possible.
Since breaking above the descending resistance line on March 21, XRP price has been trending higher. This led to a new yearly high of $0,585 on March 29. However, the ensuing decline has put the bullish structure at risk of invalidating.
Ripple Price Drops Below Important Horizontal Area
XRP prices have been falling since March 29, when XRP hit a yearly high of $0.585. While the price seems to have broken the $0.530 resistance area, the long upper wick is showing weakness, meaning the area is now acting as resistance again.
After making a lower high on April 18, the coin fell again and fell below the $0.485 level area the next day. It confirmed this area as resistance on April 24 and formed another long upper shadow (red symbol) over the next 24 hours.
Such wicks are considered a sign of selling pressure as buyers are unable to sustain the price. Instead, sellers took over and pushed the price below the opening price.
XRP/USDT daily chart | Source: TradingView
While there has been no news of a lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC), it is worth noting that SEC Chairman Gary Gensler stated in a speech in 2018 that currency electronics are not securities.
This directly contradicts the statements made in this case.
XRP Price Prediction: Wave Number Prediction Increases By 50%
The price analysis based on the price action on the six-hour time frame shows that the XRP price prediction is bullish. This is due to the number of waves. Technical analysts use the Elliott Wave Theory to identify long-term price patterns and investor sentiment to identify market trends.
The theory suggests that XRP has now completed the fourth of five bullish waves, which is a positive sign for future prices.
The forecast suggests that XRP may break the $0.530 resistance. The most likely targets are between $0.673 and $0.722, found by the 1.61 Fibonacci extension of wave 4 (black) and the length of waves 1 and 3 reaching the bottom of wave 4 (white).
As can be seen from the aforementioned indicators, if the XRP price manages to break above the $0.485 area, it can rally towards $0.530 again. However, if it is rejected, a drop to $0.425 is possible.
XRP/USDT daily chart | Source: TradingView
Moreover, a break below the first wave high at $0.430 will invalidate this bullish forecast. In this case, XRP price could drop to $0.360.
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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