The Ripple (XRP) price faced a sharp decline on April 19, after being rejected by a crucial resistance area. However, there is still hope for a potential reversal as long as the price reaches a bottom soon. In this article, we’ll take a closer look at the XRP price movement and its future outlook.
XRP Price Struggles to Overcome Resistance
The XRP price saw an increase after breaking out from a descending resistance line on March 21. The breakout suggested that the previous correction had ended and led to a new yearly high of $0.585 on March 29. However, the price seemed to have cleared the $0.530 resistance area, but a long upper wick was created, and the price fell. The wick is considered a sign of weakness, indicating that buyers could not sustain the price, and sellers took over, driving it down. Another similar wick on April 14 supports this possibility, and now the $0.530 area acts as resistance again.
XRP Price Movement and Bearish Engulfing
Currently, the digital asset is creating a bearish engulfing candlestick, which is a type of bearish candlestick that negates the entire previous increase in one day. This aligns with the previous bearish readings regarding the long upper wicks.
XRP Price Prediction: Can the Price Recover?
The technical analysis from the short-term six-hour count offers a bullish XRP price forecast. According to Elliott Wave theory, the current price is in the fourth wave of a five-wave increase, which is a positive indication for XRP’s future price. The theory looks for recurring long-term price patterns and investor psychology to determine the trend’s direction. It suggests that XRP could potentially surpass the $0.525 resistance area and reach $0.650.
The fourth wave’s price movement will determine the future trend’s direction. The most likely pattern for completing the corrective wave is a bounce at the 0.5 Fib retracement support level. Fibonacci retracement levels hypothesize that after a large price move in one direction, the price will retrace partially to a previous price level before resuming in the original direction. They can also be used to determine the top of future upward movements.
If the bullish XRP price prediction materializes, the Ripple price could increase to the $0.650 resistance area, which is also the 1.61 Fib of wave four. However, a decrease below the wave one high at $0.433 would invalidate this bullish wave count, and in that case, the XRP price could fall down to the $0.37 horizontal support area.
Conclusion
In conclusion, the Ripple (XRP) price faced resistance and experienced a sharp decline on April 19. However, there is still hope for a potential reversal as long as the price reaches a bottom soon. Technical analysis using Elliott Wave theory suggests a bullish XRP price forecast, but the fourth wave’s price movement will determine the future trend’s direction. Fibonacci retracement levels also indicate a potential increase to the $0.650 resistance area if the bullish prediction materializes. However, if the XRP price falls below the wave one high at $0.433, it could reach the $0.37 horizontal support area.
