XRP’s price decline is part of a broader market retracement. Market expert MichaelXBT has forecasted a further dip to a critical support level before a significant rebound.
XRP Expected to Decline Further Before Recovery
An analysis by MichaelXBT has highlighted an ascending channel on XRP’s 4-hour chart, which has remained intact since mid-November. This channel indicates that bullish momentum has dominated the market.
Recent data showed XRP retesting the upper channel trendline after reaching $1.63 on November 23. This resistance level aligned with the broader market retracement, causing XRP’s price to drop to $1.41.
According to MichaelXBT, XRP was expected to retest the channel’s lower trendline, which could provide the foundation for a rebound. This prediction materialized when XRP plunged nearly 11% in two 4-hour candlesticks to $1.2795. The price aligned precisely with the lower trendline, signalling a potential recovery.
Recovery in Progress: XRP Targets $1.96
Following the retest, XRP has initiated a recovery, rising over 14% from its recent low of $1.2795. MichaelXBT has confirmed that the price movement aligns with his projections.
If the recovery continues, XRP could surpass the $1.63 resistance and test the upper boundary of the ascending channel near $1.7. A breakout above this level could drive XRP to its 2021 high of $1.96, which served as significant resistance during the previous bull run.
XRP Could Reach New Highs with Sustained Momentum
A breach of the 2021 high might push XRP to the next major Fibonacci resistance level at $2.34. This milestone would surpass the 2021 peak and signal a stronger bullish trend.
However, caution is advised as XRP trades at $1.47, with its Relative Strength Index (RSI) at 86. While this indicates strong market momentum, it also suggests that XRP is in overbought territory, which could lead to short-term price corrections.
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Expert Outlook: XRP’s Path to $2 and Beyond
Market veteran Peter Brandt noted that XRP could experience a price explosion if it breaks above $1.96. Such a move would strengthen investor confidence and attract more buying interest.
With its current trajectory, XRP is on track for significant gains, provided the ascending channel holds, and key resistance levels are breached. Investors are encouraged to monitor market developments closely as XRP continues its recovery journey.
