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Next week will be a turning point in XRP’s price trend due to multiple important factors that can significantly impact XRP’s short-term performance. The chart provided shows that the asset has stabilized around the $0.53 mark after a significant drop in late September.
A spike in volatility over the next week could change the perception of XRP, an asset that has previously had difficulty breaking through key resistance levels. The ability of XRP to sustain its price above the $0.52 support level is one of its key advantages at the moment. The price has repeatedly tested this area, but has managed to remain stable and not fall further.
XRP/USDT chart by TradingView
The 100-day and 200-day moving averages, as well as other moving averages positioned slightly below the current price, are additional sources of support for XRP. In case of further downside pressure, these moving averages can act as a safety net for the asset. The possibility of a short-term breakout scenario is indicated by the formation of a wedge pattern. Given the recent sideways movement in XRP, a breakout could occur in either direction. Sharp movements are often preceded by a wedge pattern.
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If a bullish breakout occurs, the upward trend line on the chart could serve as a springboard for a sharp rise in XRP, possibly heading towards the $0.57 and $0.60 levels. There is significant downside risk given that XRP failed to sustain recent gains above the $0.60 barrier. The lack of strong buying support in the market was demonstrated by the sharp decline following the failure to break through this key resistance level last month.
If XRP fails to hold above the $0.52 support and falls further towards the $0.50 and even $0.45 range, bearish sentiment could take hold. Additionally, the chart’s Relative Strength Index (RSI), which measures trader indecision, is currently in neutral territory. If the RSI moves into oversold territory, the price will come under further pressure and we could see another big drop.
A wedge pattern and a shrinking price range indicate an impending breakout. If positive momentum returns in the coming days and XRP can close above $0.55, traders could see a strong move towards $0.60 and above.
