Ripple (XRP) is at risk of falling below $2 after falling 12% last week. This potential decline is highlighted by technical indicators identified in recent XRP analysis, pointing to growing bearish pressure.
A few days ago, XRP rose to a yearly high of $2.73, sparking rumors of a return to the $3 level. But this forecast may be delayed, and here’s why.
Ripple is losing ground on the rise
The Relative Strength Index (RSI), which measures momentum, is one of the indicators suggesting that the price of XRP may decline. RSI also shows whether an asset is overbought or oversold. When the value is above 70.00, the market is overbought, and when below 30.00, it is oversold.
On December 2, the RSI on the XRP/USD daily chart reached 96.25, indicating overbought conditions. This also coincided with the local top of the token.
As of this writing, XRP price analysis shows that the value has fallen below the neutral 50.00 area, indicating that the momentum around it is now bearish. With trading volume also declining, XRP is likely to continue to fall below $2.34 in the short term.
Besides the RSI, the Awesome Oscillator (AO) is another indicator suggesting that XRP may fall below the current threshold. AO is a momentum indicator that compares recent market movements to historical trends.
It uses a zero line at the center and price movements are plotted on both sides based on a comparison of two different moving averages to check whether the momentum is bullish or bearish. When AO is positive, the momentum is bullish and when the indicator reading is negative.
At the time of publication, JSC is positive. However, the indicator has flashing red histogram bars, indicating that the bullish momentum around the altcoin is fading.
XRP Price Prediction: Lower Lows
On the 4-hour chart, XRP formed a head and shoulders pattern. This pattern is a classic bullish to bearish reversal formation. It consists of three peaks: the left shoulder, followed by a higher peak (the head), and then a lower peak (the right shoulder).
The “neck line” is drawn by connecting the lowest points of two depressions. The tilt of the neck line can be either up or down. However, a downward slope usually indicates a more reliable turn.
As can be seen below, the price of XRP fell below the neckline at $2.40, indicating weak buying. If the bulls fail to reverse this trend, the token risks falling to $1.87. However, if buying pressure increases, XRP could rise to $2.90.
