.png){kind=logo}
XRP is currently trading around $0.6005, reflecting the consolidation of the phase in which the cryptocurrency's price dynamics have been oscillating over the last day. The underlying trend has a slight downside bias, given that it has developed a falling wedge on the chart. At press time, XRP's price was trading at $0.5981, a 1% decline from the intra-day high.
During the dip, XRP’s market capitalization and 24-hour trading volume fell by 0.87% and 15% respectively to $33,599,583,240 and $974,254,215. However despite this, in technical analysis, a falling wedge is often interpreted as a bullish reversal signal. The chart pattern is identified by converging trend lines bounding the price between them. The net result of the pattern is that, with time, the range of price swings becomes narrower, and the peaks are lower.
The falling wedge pattern formed by XRP within recent price action is typically considered bearish but often signals a reversal. The buying interest picks up when the price range falls, which indicates accumulation by traders expecting a future advance in price. This is one pattern that analysts are going to look at very carefully, as an upside breakout may eventually produce good gains.
Some other important technical indicators show what XRP's next potential move could be. The Relative Strength Index (RSI) reads around 30.77, just above the oversold threshold at 30, making it undervalued and probably setting the pace for a rebound or pullback of late lows.
Meanwhile, the Moving Average Convergence Divergence (MACD) stays below the signal line and near the zero line, confirming the bearish momentum. However, a decrease in the size of the negative bars on the MACD histogram indicates a loss in the strength of the bearish power and may become bullish.
Subsequently, the immediate support is around $0.5600, likely the confluence with the wedge's lower boundary. Below this zone, the next level of support could be just above $0.5400, which also acted as a reaction point in previously identical price ranges. The initial resistance is likely to form near the $0.6200 level, which coincides with the upper trendline of the falling wedge and recent price reactions. If XRP surpasses the resistance, the next target could be $0.6400.
Analysts, including Javon Marks, have noted the significance of this consolidation phase, with XRP sitting at a critical technical juncture. Marks suggests that a breakout from the current consolidation could lead to a substantial upside, even though XRP's price has recently struggled to maintain momentum.
A 3-4% rise could push XRP out of a 2,424-day resisting trend, which has existed since the cryptocurrency's bull run in 2017.
Further analysis from experts like pseudonymous analyst Mack Attack compares XRP's performance during the 2017 bull run when it saw a dramatic increase. Although today's market conditions differ, anticipating another bull run has fueled speculation about potential gains. Mack Attack, along with analyst Aryan, has projected that XRP could see substantial gains if the market conditions align, with targets as high as $456 in an optimistic scenario.
