The post XRP’s Effortless Behavior Raises Concerns; Has the Bullish Momentum Faded Away? appeared first on Coinpedia Fintech News
After the historical win of Ripple over the SEC a couple of days ago, it was believed that the XRP price may maintain a significant upswing without major pullbacks. The price did record the most bullish daily candle of a rise of over 100% for the first time since August 2021, but the recent price action raises many concerns over the upcoming trend.
The lawsuit had inversely impacted the XRP price as the XRP Army was annoyed with the constant delay in the advancement of the case. This caused the price to maintain a sluggish trend below $0.55 for more than 12 months. However, the recent bullish action raised some hope for a bullish reversal, which seems to have halted due to the absence of intense bullish action.
Presently, the price failed to surpass the multiyear resistance zone between $0.79 and $0.84, which may lead to a fresh descending trend, testing the lower support levels close to $0.5.
Considering the long-term projections of the XRP price, a larger scope for a bearish pullback emerges. Ever since the price faced rejection from the multi-year resistance zone, it has been recording multiple failed attempts at doing so. Hence, the bullish strength appears to have waned to a large extent, which may trigger a fresh bearish wave very soon. Besides, the RSI has just displayed a bearish divergence, which may now drag the price lower.
The RSI has been trading along the rising trend line, which acts either as resistance or support depending on market sentiments. Previously, during the 2018-19 bear market, the RSI maintained an ascending trend, and a similar trend is seen at the moment. Therefore, if the price remained bearish until the RSI flipped its ongoing trend, then the price is believed to be holding a strong upswing, currently.
Therefore, no doubt, the XRP price may witness a giant pullback in the short term, the trade set in the long term aims to achieve $1 before the end of the year 2023.