Short squeeze or temporary decline, what’s next for XRP? (Ripple price analysis)

Short squeeze or temporary decline, what’s next for XRP? (Ripple price analysis)

Ripple is aiming for higher price levels as the market witnessed another uptrend last week. The momentum of the trend looks promising, but the price must first clear the crucial resistance level at $0.43.

Technical analysis

From Shayan

The daily chart

After a short-term consolidation at the $0.39 level, the price finally broke the 100-day and 200-day moving average lines with significant momentum and continues to rise.

A breakout of the 200-day moving average is considered a clear bullish sign in terms of price action and impacts overall market sentiment.

However, the price is facing a crucial resistance region consisting of the static resistance zone of $0.41-0.43 and the middle boundary of the channel. This means that there is a war between buyers and sellers.

The upcoming price action will determine the short-term path of XRP and if the bulls achieve dominance and the price breaks above the mentioned levels, further increases are expected.

On the contrary, if the price does not break out, there may be a decline followed by short-term fluctuations.

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The 4 hour chart

On the 4-hour time frame, the aforementioned $0.41-$0.43 resistance zone is more evident as it recently rejected the price in late November. Currently, the price is at the same level ahead of the yellow descending trend line, making it a stronger resistance zone.

Nevertheless, a solid bearish divergence has formed between the price and the RSI indicator and could reverse the current trend, leading to a slight decline. As a result, the odds are stacked against Ripple in terms of price action, and a short-term rejection is imminent.

Still, the market could surprise participants with a short squeeze event and impulsively break above this resistance region.

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