XRP reached its equilibrium together with the market and lost 8% month-to-month since November 11.
The price has been moving with low amplitude and tried to break through the $0.39 resistance level for a couple of days but without any success. Judging by a local SMA-14, a weak downward trend is taking shape. However, the Relative Strength Index is showing a completely different picture.
A potential for reversal and good recovery is here
3-week RSI has been moving under 50 for over a year. The recent attempt at crossing the line happened just two months ago when Ripple announced that their legal battle with the US government is going well.
Now, the token is in a position for a reversal and many fundamental factors also say that Ripple may start going up in the first quarter of 2023.
The flattening of the price chart that we are looking at right now is also an indication that the market is tired to move in the downward direction. Trading volumes are falling too. All conditions are indicative of a soon-to-happen bull rally that may start in January.
At this time, any forecast is nothing but speculation. However, Ripple managed to weather the storm and didn’t lose too much. The company wants to continue growing and is willing to work with regulators.
If everything goes according to plan, Ripple will have a solid foundation to start recovering faster than the crypto market as a whole.
14-hour RSI is chaotic and jittery, but the trajectory of SMA on the indicator is clearly toward an under 50 area meaning that the asset is close to being oversold and may start climbing within a couple of days.
The long-term situation is still unclear
Following XRP is a good idea for retail traders interested in long positions that have a relatively high chance of generating profit within a year. However, the long-term prospects of Ripple depend on a variety of factors including US regulations, internal management, and the general situation in the crypto market.
Right now, we have all indications to form a very interesting XRP forecast.