Ripple token XRP has lost nearly 50% since reaching its 2020 high of $ 0.79 on November 24. Despite the drop, XRP is approaching key support levels that are likely to provide a bounce and possibly reverse the bearish trend.
XRP long-term outlook
When XRP hit the top of 2020, the long-term resistance level was seen at $ 0.75 and there was support at $ 0.50.
However, XRP broke off support and quickly retreated to the $ 0.32 long-term support area. XRP had begun to rise from this level in early November.
Technical indicators are entering a downward trend. The RSI fell sharply, the MACD is in the process of forming the first low momentum bar, and the Stochastic oscillator has shown a bearish trend.
The daily chart shows that XRP has followed a very long-term rising support line since it hit March lows.
Additionally, there are two key support areas at $ 0.325 and $ 0.29. The upward support line coincides with the $ 0.29 support.
Similar to the weekly timeframe, there are no signs of a bullish reversal.
The two-hour chart is showing some upward trend on the RSI, while the MACD is falling rapidly.
Therefore, while XRP is approaching multiple strong support levels, there are no signs of a bullish reversal yet.
Cryptocurrency trader @thetradinghubb summed up the XRP chart, indicating that it will likely drop towards a low of $ 0.30 before returning.
The most likely number of waves indicates that it has completed wave 1 (shown in white), which started with the lowest levels in March. The lower wave count is shown in orange.
Right now, the price is at the 0.618 Fib retracement level, a likely place for this downward move to end. This scenario is also strengthened by the numerous support levels just below the current price.
XRP Long Term Count
Also, the subwavelength for possible corrective wave 2 indicates that the correction is nearing its end. This is due to the 1: 1 ratio found between waves 1 and 2.
The XRP price is expected to reverse its trend soon and eventually attempt to move above the $ 0.50 area. While the long-term trend is likely to show a bullish trend, it cannot be confirmed until it moves above $ 0.50.