After sinking to new lows in the June 22 crash, the Ripple XRP price appears to be finding some consolidation for the next leg up. At present, Ripple (XRP) is trading around the $0.632 mark after having reached a high of $0.66 overnight.
Although the short-term prediction remains slightly bearish, this price movement could be a consolidation to set a higher low for a bullish move in the next weeks. The $1 price point remains the target here but that still seems to be a long way off, at least for the present.
Ripple price seems stuck at $0.65 resistance
The resistance level of $0.65 appears to be a sticking point for XRP at present. The June 22 low represented a 70% decline from the late April high of $1.96. Interestingly the 50-week SMA was registered at $0.54. There was also the first oversold reading on the daily RSI since December 2020.
So, basically XRP need to close above $0.6 to indicate that it is in bullish mode – something it is quite far from doing. The current bearish tendency in the market as well as a collapse of consumer confidence is also having a negative effect on proceedings.
Conversely however, if the price does achieve that daily close, a leg up could ensue with the price rising to around the $0.98 level. After that, the reaching of the $1 psychological level may also be achieved.
However, if the 50-day SMA is broken, XRP’s price could spiral all the way down to the $0.45 level or a 25% drop from current price. This rather depends on market conditions which continue to be bearish. However, an upside is much more likely if the 50-day SMA holds.
Long Term Forecast: Will The Price Turn?
Ripple has been in descending mode for quite a long time now. The late April price point of $1.96 had many long term hodlers hoping that it would finally regain the $3 level from 3 years ago. That however was a cruel illusion and after reaching the $1.95 level on April 15, it crashed all the way down to $1.04 a few days later. After another climb to the $1.60 level on 18 May, another 30% crash resulted on 19 May for the price to descend to $1.05 again.
The Ripple price continued decreasing to eventually reach $0.55 on 22 June. This means that the recent rise is around 15% up from that low and there seems to be strong support at the $0.50 mark. All depends on whether Ripple will surpass the $0.65 resistance level and eventually reach the $0.76 mark which is the next line of resistance.
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Gerald Fenech
