Over the past week, XRP continued to struggle, with the steep incline on 25 October failing to propel the token above its major resistances. The price has since undergone several corrections and over the past 48 hours, the coin has steadily depreciated from $0.297 to $0.291. However, the trend may undergo a change soon, according to recent analysis.
The 1-hour chart for XRP exhibited price corrections that dated back to 30 October as the token recorded sideways movement on the chart. However, at press time, the valuation navigated within the trend lines and pictured the formation of a descending channel. A couple of prominent lower highs and lower lows were observed within the trend, as an imminent bullish breakout was on the cards.
The trading volume depleted over the duration of the trend and validated the descending channel formation. The MACD indicator remained bearish in the charts, but the signal line maintained close proximity with the MACD signal and implied a trend reversal in the future.
The 4-hour chart for XRP highlighted clear sideways movement between the resistance at $0.304 and the support at $0.285. However, the formation of a falling wedge conveyed the improved possibility of another bullish breakout. The 50-Moving Average recently moved over the 100-Moving Average and suggested the completion of a bullish crossover.
The Relative Strength Index was slowly moving towards the overbought zone, but over the past 3 weeks, the 40.96 line has been breached only once. Hence, the possibility of a bounce-back was high for the token.
However, the positive incline may fail to breach the major resistances at $0.304 and $0.302, as the immediate resistance at $0.295 awaits re-testing.
XRP’s price rarely surges dramatically in the market and the next bullish break is unlikely to change the trend.