XRP price shows bullish signs in the weekly time frame, long-term bullish structure is still intact
XRP price shows bullish signs in the weekly time frame, suggesting that the long-term bullish structure is still intact. However, the short-term movement is unclear.
XRP/USD 4-hour chart | Source: TradingView
XRP price looks uncertain as SEC lawsuit nears the end
The ongoing Ripple vs. SEC lawsuit might be coming to an end. On September 19, both parties will present their closing arguments. Afterward, the lawyers from both sides will start a negotiation process that will last until the end of the year.
With such an important milestone coming up, it is interesting to look at the price movement and determine if there is potential for a significant price increase or decrease.
XRP has been falling underneath a descending resistance line since reaching a high of $1.97 in April 2021. The downward movement has led to a low of $0.287 in June 2022. The ensuing bounce validated a long-term ascending support line.
The support line has been in place since March 2020. Additionally, the line coincides with the $0.32 horizontal support area. So, it is imperative that the line must remain in place in order for the bullish structure to still remain valid. XRP validated it once more and created a higher low in the beginning of Sept.
If the upward movement continues, the aforementioned descending resistance line would be at $0.45. So far, the weekly RSI has yet to break out from its descending resistance line. So, it is not yet certain if the long-term trend is bullish or bearish.
Despite the bullish signs from the weekly time frame, the price movement in the daily time frame is still unclear. The first reason is that the price is trading inside a symmetrical triangle. The symmetrical triangle is considered a neutral pattern, meaning that a breakout and breakdown both remain possible. Additionally, the daily RSI is moving freely above and below 50, another sign of an undetermined trend.
So, adding to the suggestion from the weekly time frame, whether the price breaks out or down from the triangle will likely determine the direction of the future trend.
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