The Ripple XRP price recently fell below the critical $0.53 horizontal support area.
While the XRP price drop temporarily stopped, Ripple made two unsuccessful attempts at reclaiming the area before resuming its fall this week. Can the XRP Price bounce back?
Ripple Falls Below Critical Support
The technical analysis from the weekly time frame shows that the XRP price has fallen since its yearly high of $0.94 in July.
The decrease led to a low of $0.42, causing a breakdown from the $0.53 horizontal support area.
After bouncing, the price moved above the $0.53 horizontal area. However, it was unsuccessful and created consecutive long upper wicks (red icons). The decrease resumed this week.
The XRP price has also followed a long-term ascending support trendline, which has been in place since June 2022.
Some negative Ripple news hit the market this week. The Binance exchange announced that it will delist the XRP/BUSD pair after the latter recorded the lowest transactional activity for 2023.
Ripple Labs CFO Kristina Campbell announced her departure from the company as well.
However, not all news is negative since Judge Analisa Torres denied the Securities and Exchange Commission’s request to appeal the previous ruling.
Also, there is an upcoming policy summit on October 26 between Ripple and Metaco.
XRP Price Prediction: Can Price Begin a Reversal?
The weekly Relative Strength Index (RSI) RSI supports the ongoing descent.
When evaluating market conditions, traders use the RSI as a momentum indicator to determine if a market is overbought or oversold, and to decide whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true.
The indicator is falling and is below 50, both considered signs of a bearish trend.
More importantly, the indicator has also broken down from an ascending support trendline (green), which has been in place since July. This supports the ongoing XRP price drop.
It is also worth mentioning that more than $15 million worth of XRP has been moved to a wallet in Bitstamp.
If the downward movement continues, XRP can fall by another 20% and reach the previously outlined long-term ascending support line at $0.40.
Despite this bearish XRP price prediction, a weekly close above $0.53 will mean that the trend is still bullish.
In that case, the price can increase by 55% and reach the next resistance at $0.75.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
