The Ripple XRP price has gradually fallen since its yearly high of $0.95 in July.
The price broke out in November but could not sustain its upward movement and now trades close to support. Will it bounce or break down?
Ripple Trades Above Horizontal Support
The weekly time frame technical analysis shows that XRP has followed an ascending support line since May 2022.
While doing so, XRP broke out from an important horizontal area and reached a new yearly high in July. However, the XRP price failed to sustain its rapid upward movement and fell afterward, creating a higher low in August (green icon) and a steeper ascending support trend line.
Cryptocurrency trader JD noted the importance of this ascending support trend line, comparing it to that of the previous market cycle.
The price now trades above the horizontal support area.
Relative Strength Index (RSI) serves as a momentum indicator for traders, aiding in assessing whether a market is overbought or oversold and guiding decisions on asset accumulation or sale.
When the readings surpass 50 and show an upward trajectory, the bullish momentum persists. Conversely, readings below 50 signal a potential bearish trend.
XRP price action shows that after breaking out from a descending resistance trend line, the XRP price was rejected by the 0.618 Fib retracement resistance level (red icon) at $0.75.
After another decrease, XRP broke out from a shorter-term descending resistance trend line but failed to sustain its increase.
Read More: Getting Started With XRP Wallets
The daily RSI is also at 50, indicating an undetermined trend.
Currently, XRP trades slightly above the $0.58 horizontal support level. Whether it breaks down or bounces can determine the future trend.
A breakdown from the support area could cause a 25% drop to the closest support at $0.48, while a bounce can catalyze a 20% increase to the 0.618 Fib retracement resistance level at $0.75.
