The XRP price could break out from a short-term resistance level in the near future, accelerating its rate of increase toward $0.47.
While decreasing inside the channel, XRP fell to a low of $0.28, validating the channel’s support line (green icon). The ensuing upward movement reclaimed the midline of the channel.
The price action from the weekly time frame shows that the XRP price fell inside a descending parallel channel since April 2021. At the time, it had reached a 2021 high of $1.98. This was considerably below the all-time high of $3.55 reached in Jan. 2018.
While decreasing inside the channel, XRP fell to a low of $0.28, validating the channel’s support line (green icon). The ensuing upward movement reclaimed the channel’s midline. Afterward, the XRP price fell during the week of Nov. 7 -14, in a fall seen throughout the crypto market. Nevertheless, it has held above the channel’s midline (green circle). This is considered a bullish sign.
The weekly RSI is extremely bullish. Firstly, it has broken out from the resistance line that began simultaneously with the channel. Secondly, it generated bullish divergence (green line). The trend line of the divergence is still intact. These are bullish signs that bode well for the future XRP price.
Therefore, a breakout from the channel is possible. If one occurs, XRP could reach the resistance area with an average price of $0.87.
As a result, the XRP price prediction from the weekly time frame is bullish. A weekly close below the channel’s midline and/or breakdown of the RSI trend line would invalidate it.
XRP Price Prediction 2022: Bullish Structure Still Intact
The price movement from the daily time frame shows that the XRP price has followed an ascending support line since June 14. The line has been validated numerous times, most recently on Nov. 14 (green icon). This created a bullish engulfing candlestick during the next 24 hours.
The main short-term resistance area is at $0.39. This is the 0.382 Fib retracement resistance level and a horizontal resistance area.
Since the XRP price has made four attempts at breaking out above it, it is likely that it will eventually be successful. This would also cause the daily RSI to move above 50.
In that case, the XRP price could reach the descending resistance line at $0.47, nearly coinciding with the resistance line of the long-term channel.
Conversely, a daily close below the ascending support line would indicate that the trend is bearish instead.
Finally, the six-hour chart aligns with the daily one, suggesting a breakout will soon follow.
The XRP price is trading inside an ascending triangle, which is considered a bullish pattern. A breakout that travels the length of the triangle (green) would take the price to the aforementioned resistance line at $0.47.
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