Will the price of XRP rise as it breaks above the downtrend line?

The price of XRP is close to confirming a multi-week trend break, which could potentially start an uptrend in the coming sessions.

The price of XRP (XRP) has fallen about 17% since mid-February and about 43% from a high of $2.39.

XRP mirrored Bitcoin’s recent decline as the bullish slipped past several key support levels, while investor appetite for risk assets remained subdued amid growing macroeconomic and geopolitical uncertainty.

The price of XRP has also been in a downtrend as funding levels have softened, while the forced liquidation of long leveraged positions has accelerated the decline from what only spot sales would have produced.

The lack of institutional inflows since the beginning of this year has also played a role in reducing investor demand for the token this year. US XRP ETFs raised $88 million in the past three months, up from $1.16 billion recorded in the November-December period, SoSoValue data shows.

On the daily chart, the price of XRP is close to breaking out of the downtrend that has been acting as a dynamic resistance level since early January. A successful reversal of the pattern has historically been followed by significant upward momentum.

At press time, the price of XRP was trading at $1.36, close to breaking the pattern. It is worth noting that $1.36 also marks the bottom of the trading range on Math Murray’s lines. The line is considered a key support level for price reversal.

A break from this key psychological level could lead to a sharp rally to $1.75, which is the top of the trading range for Murray’s lines, or even to a strong reversal point at $1.95.

Conversely, a break of resistance could extend the downtrend over the coming weeks, possibly against a strong resistance from the Murray line at $1.17, where the bulls could look to recover the floor.

However, concerns related to the situation in the Middle East remain a key driver of risk appetite at this time. Although the volatility seen over the weekend has eased somewhat over the past 48 hours, traders are likely to remain cautious until there are clearer signs of easing.