XRP is approaching strong support area and could rise in the short term

XRP has been falling since April but bounced off the long-term support area of ​​$ 0.60.

While the direction of the long-term trend is unclear, price has broken the short-term resistance line.

The long-term movement of XRP

XRP has fallen since hitting a high of $ 1.96 on April 14th. The downtrend continued until it hit a low of $ 0.51 on June 22nd.

The price has risen since then, confirming the $ 0.60 area as support. Prior to the March breakout, XRP consolidated below this level for 924 days.

However, despite the recovery, long-term technical indicators are still falling. The RSI is below 50 and the stochastic oscillator has created a bearish cross. In addition, the MACD histogram is about to cut into negative territory.

While the price action looks bullish, the technical indicators are bearish. Hence, the direction of the long-term trend is unclear.

XRP / USDT weekly chart | Source: TradingView

Declining support line

The daily chart shows that XRP has been falling along with a descending support line since April 23rd. The line has been touched several times, most recently on June 22nd.

The sustained uptrend is initiated by a bullish divergence in the MACD (blue line). Additionally, the stochastic oscillator has created a bullish cross and the RSI has risen above 30.

The main resistance range is between $ 1.11 and $ 1.25. This area is at the 0.5-0.618 fib retracement resistance levels.

While the daily chart offers a more bullish outlook than the weekly chart, this is still not enough to confirm a bullish reversal.

XRP / USDT daily chart | Source: TradingView

The six hour chart is bullish as it is breaking above the descending resistance line. An upward movement is therefore to be expected. The first target is the $ 0.92 resistance, but the price is likely to move in the $ 1.11-1.25 zone.

XRP / USDT 6-hour chart | Source: TradingView

Count waves

There are two main wavenumbers for XRP. In the first scenario, the decline since the April high is an introductory crossover.

In this case, an uptrend follows, most likely towards the above-described resistance area at $ 1.11 to $ 1.25.

XRP / USDT 6-hour chart | Source: TradingView

In another scenario, the current gain is part of wave X of the WXY correction structure (orange). In this case, the uptrend will be weaker, reaching a maximum of USD 1.10 and possibly ending in the USD 0.92 zone.

XRP / USDT 6-hour chart | Source: TradingView

So while the direction of the long-term trend is unclear, both wave scenarios suggest a short-term rally for XRP that hits at least $ 0.92. This is followed by a further sharp drop.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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