XRP Price Outlook: Will Intensive Supply Lead to a Drop to $0.53?
Amid the turmoil in the cryptocurrency market, many top altcoins suffered significant intraday losses. However, XRP’s price decline was smaller relative to other currencies, showing its resilience, which could be a sign that the market is ready for a rebound. So, will the price of XRP fall to $0.53 amid broader market selling pressure, or will it buck the trend and rise to the psychologically important $1 mark? This article will explore the possibilities of XRP price movement from the perspective of technical charts and market analysis.
How Does XRP’s Wedge Breakout Perform?
Looking at the technical charts, XRP’s daily chart shows a bullish trend that managed to break above multiple key technical indicators. Following the wedge breakout, the price not only surpassed the 50-day moving average (EMA) but also exceeded the 50% Fibonacci retracement level, gaining 45% in just three weeks. Recently, XRP rebounded quickly from the 50% Fibonacci level of $0.57, gaining 7% in just six days.
However, the current uptrend faces resistance from the previous high of $0.62.
Currently, XRP has a market capitalization of approximately $3.414 billion and is trading at $0.60294, down 1.48% intraday. The intraday candlesticks are showing longer tails, indicating stronger buying demand at lower price levels. On the 4-hour chart, the recovery bounce formed a rising wedge pattern and multiple low-price rejection candles formed near the support trendline.
Additionally, the 50-day EMA is firmly supporting the trendline, increasing the likelihood of continued gains.
Technical indicator analysis:
Relative Strength Index (RSI): The daily RSI line is moving sideways near the overbought border, indicating that the market may be in the midst of a short-term correction.
Moving Averages (EMA): A rise in the 50-day EMA suggests a possible golden cross with the 200-day EMA, which is usually a strong bullish sign.
XRP Price Trend Forecast
If XRP price can break above the previous high of $0.62, it may open room for further gains, with the next targets being $0.65 and $0.72. However, since a rising wedge usually signals a downward trend, the low rejection of the 50 EMA on the 4-hour chart is crucial. If the price cannot remain at 0.Above the $57 support, a drop to $0.53 is likely.
