XRP's Bearish Trend Inevitable?
Ripple's price has undergone a significant decline since its annual peak. The upcoming trend will be determined by whether it manages to stay above the $0.48 area.
Chart by TradingView
XRP's Bearish Signs
Analyzing the weekly time frame for XRP reveals a predominantly bearish outlook for several reasons.
Firstly, the XRP price encountered rejection at the 0.382 Fibonacci retracement level of $0.93 immediately upon reaching its yearly high. This resulted in a pronounced upper wick, which is often interpreted as an indicator of selling pressure.
Additionally, the weekly Relative Strength Index (RSI) is exhibiting bearish tendencies. The RSI functions as a momentum gauge employed by traders to gauge whether a market is overbought or oversold, guiding their decisions to accumulate or sell an asset.
Insights from the daily timeframe corroborate the bearish sentiment observed on the weekly chart. XRP's price has significantly dipped below the primary support area at $0.54 within this timeframe. Notably, the price has twice verified this region as resistance.
Furthermore, the daily RSI lies below 50 and is in a declining mode—both characteristics that align with a bearish trend.
Hope for a Bull Run
While there are several factors pointing to a bear market, the price is currently stable on an ascending trendline, which has been present since the start of the year. It is imperative for XRP to stay above this level in order to continue its long-term ascend.
It's worth noting that the Ripple vs. SEC legal case is set to continue into the next year, with the subsequent trial date scheduled for April 2024. The case will exert the most significant influence on the price than any other news.
