Ripple (XRP) price is trading in the midline of a long-term pattern. Whether it breaks through or rebounds will determine the future trend.
XRP price has been falling since March 29 when it was rejected by the resistance line of the channel. A break of the channel’s midline would put the entire previous bullish structure and uptrend at risk.
XRP Price Drops Below Critical Resistance Level Again
Since June 2022, the XRP price has been trading within a long-term ascending parallel channel. This pattern is considered bearish, indicating that a breakdown is most likely.
The resistance line of the channel rejected the March 29 price (red icon) and started the current downtrend. Shortly after, the price fell below the $0.53 level zone and confirmed it as resistance (red icon).
Both are considered bearish signs and typically lead to a decline. Currently, the cryptocurrency is trading just above the channel’s midline. Whether it rebounds or breaks through can determine the future trend.
The daily RSI favors a sharp downside breakout from overbought territory, currently below the 50 level.
XRP/USDT daily chart | Source: TradingView
XRP Price Prediction: Waves Still Offer Bullish Hope
The wave count on the daily time frame offers hope for a future rally. It shows that the fifth and final wave of the XRP price has just started rising. If correct, a target between $0.67 and $0.72 could act as a top.
The 1.61 Fibonacci extension of the fourth wave (black) and the sum of the lengths of the first and third waves (white) provide this target.
However, a break below the first wave high (red line) at $0.430 will invalidate this bullish forecast. If this happens, XRP price could drop to $0.360.
XRP/USDT daily chart | Source: TradingView
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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