XRP Price Targets $3.34 After Corrective Downtrend Within Descending Channel
The XRP price has been trading 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 playout of a descending channel. According to an analysis on TradingView, XRPs price movement suggests a corrective downtrend confined within a descending channel on the daily chart. Nonetheless, XRP is on track for a rebound to 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 3. On that day, the cryptocurrency reached a peak of $2.9 on Binance but faced rejection and dropped 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 upward rebound, the move was met with another rejection. The alternating pattern of upward and downward 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. Within this context, the TradingView analysis identifies initial support levels at $1.8890 and $1.6, which align closely with the 0.618 and 0.786 Fibonacci retracement levels when drawn from the $2.9 high.
These levels are support zones where the cryptocurrency could stabilize if downward pressure persists. A successful defense of these supports might act as a springboard for a bullish reversal, paving the way for the next upward leg in XRPs price trajectory. Failure to hold these levels could increase bearish pressure on the XRP price and drive the price further down to the most notable support at $1.5.
Potential Rebound And Target Levels For XRP Price
If the XRP price successfully rebounds from the identified support zones, it is expected to challenge resistance at $2.8, marking the first milestone on its upward journey. A notable break above $2.8 would open up a run towards the final target of $3.3450.
At the time of writing, the XRP price is trading at $2.41 and is down by 0.9% and 2% in the past 24 hours and seven days, respectively. Reaching the $3.345 level is tantamount to a 39% increase from the current price levels. Furthermore, this would put the XRP price close to its current all-time high of $3.4. The bullish momentum required to reach $3.345 could also push the XRP price into new all-time highs from that point.
Read more: https://www.newsbtc.com/analysis/xrp/xrp-price-targets-3-34/
Text source: NewsBTC
