The Ripple (XRP) price has recently dropped below a critical support level that has put its entire bullish structure at risk. Technical analysis of both the short-term and long-term charts reveals a bearish trend that makes a rapid price recovery unlikely. Since June 2022, the XRP price has been climbing within a long-term ascending parallel channel. However, on March 29, the channel’s resistance line rejected the price, causing the current downward trend. This indicates that a breakdown may soon occur.

In addition, recent price action confirms that XRP is in a bearish trend. On April 21, XRP reached the channel’s midline but the ensuing drop on May 7 saw it lose midline support, suggesting that the trend is bearish. The Relative Strength Index (RSI), a momentum indicator that reveals when a market is overbought or oversold, also supports the bearish trend. The indicator is below 50 and previously broke its bullish divergence trendline.

The technical analysis from the short-term six-hour chart reveals further bearish signs. The XRP price has broken down from the 0.618 Fibonacci retracement level and is now trading in a descending parallel channel. It has also fallen below its midline, another indication of a bearish trend. If the price continues to decline, XRP is expected to reach its next closest support at $0.40, which is formed by a horizontal support area and the channel’s support line. But, if it rises above the channel’s midline, the trend will remain bullish, with an upward movement towards $0.480 being anticipated.

Although current market conditions suggest that the Ripple (XRP) price is unlikely to recover soon, there is still hope, as a bullish reversal must begin imminently to prevent further losses. Fundamentally, the ongoing Ripple Labs vs SEC case could affect a potential XRP listing by Coinbase. However, the full impact that this process will have on the current XRP price remains to be seen.



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