Can Ripple (XRP) Finish the Year Strong? Analysts Weigh In
In the world of cryptocurrency, Ripple XRP has been making waves. The recent price dip may have raised questions, but it still holds above a crucial support level. As we approach the end of the year, the big question is whether XRP can stage a strong comeback.
Ripple Maintains Support
Analyzing the technical aspects on a weekly timeline reveals that XRP has been following an ascending support trend line since May 2022. Notably, in April, the price surged above this trend line, marking a significant uptick and reaching a yearly high of $0.94 in July 2023.
However, recent market movements have led to a decline in XRP’s price, evident in a long upper wick and the confirmation of a long-term horizontal resistance zone. Despite this setback, XRP found its footing again in October and continues to trade above a vital long-term support area.
Reading the Signals
Traders in the crypto market often rely on the RSI (Relative Strength Index) as a momentum indicator to gauge whether an asset is overbought or oversold. A reading above 50, coupled with an upward trend, indicates a bullish market, while readings below 50 suggest the opposite.
Currently, the weekly RSI for XRP is above 50 and trending upwards, signaling a bullish trend.
Differing Opinions
The future trend of XRP remains uncertain, with analysts offering mixed perspectives. MisterChoc remains cautious, citing similarities in the current price level to that of 2018 and 2020. On the contrary, Louie is bullish, anticipating a breakout from a long-term symmetrical triangle pattern.
ChloeXRP shares the optimism, setting high targets above $1 and outlining plans to take profits at key price levels. Meanwhile, egragcrypto predicts a rapid rise in XRP’s price, aiming for $5.50.
End-of-Year Outlook
A closer look at the daily technical analysis leans slightly in favor of a bullish outcome. XRP has broken free from a long-term descending resistance trend line in October and a short-term trend line in December. A recent bounce above this trend line suggests a retest after a breakout.
However, the daily RSI hasn’t fully confirmed this breakout as it hovers around 50. Nonetheless, XRP’s price action is deemed bullish as it remains above the $0.60 support level. If the breakout continues, XRP could see a 20% increase to reach the 0.618 Fib retracement resistance level at $0.75.
However, it’s essential to keep in mind that falling below the $0.60 area could nullify the breakout, potentially leading to a 25% drop to the next support at $0.47. The cryptocurrency market, as always, remains unpredictable as the year comes to a close.
For BeInCrypto’s latest crypto market analysis, click here.
