Ripple (XRP)’s attempts to climb to $0.65 may face significant hurdles despite recent price gains. At press time, XRP is hovering around $0.53.
This rise follows a sharp drop in the cryptocurrency’s value to $0.50 a few days earlier. While the token has previously shown signs of a potential trend reversal, this analysis suggests that higher values may remain elusive.
The pulsation can’t keep up
According to the daily chart, the supply zone is located around $0.57, a key level that XRP has previously attempted to reach. However, at the moment, XRP does not have the necessary buying pressure to retest this area.
The Parabolic Stop-and-Reverse (SAR) indicator supports this perspective. The SAR is a valuable technical tool used to identify trends and reversals. A bullish reversal for XRP usually occurs when the price crosses the indicator’s dotted lines above. On the other hand, a bearish reversal occurs when the dotted lines move above the price.
In August, XRP price jumped to $0.61 after the SAR indicated a bullish reversal. But at the time of writing, the dotted lines are above the altcoin’s price, suggesting it may face resistance between $0.57 and $0.63.
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Second, Bull Bear Power (BBP), an indicator used to measure the strength of opposing forces in the market, matches the bias. When BBP is positive, the bulls have more power, which can contribute to a significant increase in prices.
However, in the XRP situation, BBP is in the negative area, which indicates strong selling pressure and control from the bears.
XRP Price Prediction: Downtrend to $0.48
A closer look at the daily chart shows a bearish double peak forming on the Awesome Oscillator (AO). This pattern occurs when the green bars on the AO make two consecutive peaks, with the second peak being lower than the first, signaling a potential downtrend.
As shown in the chart, XRP has developed this technical setup. This suggests that the token’s attempt to reach $0.55 may fail and it may face a downtrend, potentially falling below $0.48.
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However, this bearish outlook may be invalidated if XRP manages to break through the $0.57 mark. In this case, the cryptocurrency’s value could exceed $0.63, potentially reaching $0.65.
