The price of XRP has been trade on a consolidation path after reaching a six-year high of $2.9 on December 3. The cryptocurrency has struggled to maintain upward momentum, and recent analysis points to the evolution of a descending channel. According to an analysis by TradingView, XRP’s price movement suggests a corrective bearish trend confined within a descending channel on the daily chart. However, XRP is on the way to a rebound on the upside, with price targets around its current all-time high.
Corrective Downtrend and Key Support Levels
According to a TradingView Analysis, XRP has been experiencing a corrective downtrend since December 3rd. That day, the cryptocurrency reached a high of $2.9 on Binance, but faced rejection and fell to a low of $2.25 on the same day before closing at $2.5. This marked the beginning of a bearish phase, as XRP subsequently formed two more consecutive daily bearish candles.
While the token attempted a brief bounce back up, the move met with another rejection. The alternating pattern of ascending and descending movements resulted in the formation of lower highs and lower lows, which is a characteristic of a descending channel.
The descending channel is a temporary phase of price correction rather than a prolonged bearish outlook. In this context, TradingView analysis identifies initial support levels at $1.8890 and $1.6, which align closely with the Fibonacci retracement levels of 0.618 and 0.786 when pulled from the high of $2.9.
These levels They are support areas where the cryptocurrency could stabilize if downward pressure persists. A successful defense of these supports could act as a springboard for a bullish reversal, paving the way for the next upward leg in XRP’s price trajectory. Failure to hold these levels could increase bearish pressure on XRP price and cause the price to drop further to the most notable support at $1.5.
Potential bounce and target levels for XRP price
If XRP price successfully recovers from the identified support zones, it is expected to challenge the $2.8 resistance, marking the first milestone in your upward journey. A notable break above $2.8 would open a run towards the final target of $3.3450.
At the time of writing, the price of XRP is trading at $2.41 and is down 0.9% and 2% in the last 24 hours and seven days, respectively. Reaching the $3,345 level is equivalent to a 39% increase from current price levels. Furthermore, this would bring the price of XRP closer to its current all-time high of $3.4. Bullish momentum needed to reach $3,345 could also boost XRP price to new all-time highs from that moment on.
Fountain: NewsBTC.com
