Following a corrective downtrend within the descending channel, the price of XRP targets $3.34.

On December 3, the price of XRP hit a six-year high of $2.9 and has since been trading on a consolidation path. The cryptocurrency has had difficulty keeping up its upward momentum, and new research suggests that a downward channel is about to unfold. The price action of XRP points to a corrective downtrend that is contained within a falling channel on the daily chart, according an analysis on TradingView. However, with price predictions centred around its current all-time high, XRP seems poised for an upward comeback.

Reversing the Downtrend and Important Support Levels

A TradingView analysis indicates that since December 3, XRP has been in a corrective slump. That day, the cryptocurrency peaked on Binance at $2.9, but it was rejected and fell to $2.25 before closing at $2.5 a day later. As XRP went on to form two more consecutive daily bearish candles, this signalled the start of a bearish period.

The token made a fleeting attempt to rise again, but it was rejected once more. A falling channel is characterised by the emergence of lower highs and lower lows as a result of the alternating pattern of upward and downward movements.

Instead of representing a long-term pessimistic outlook, the descending pattern represents a brief stage of market correction. Based on the $2.9 high, the TradingView analysis shows that the initial support levels at $1.8890 and $1.6 are in tight alignment with the 0.618 and 0.786 Fibonacci retracement levels.

If the downward pressure continues, the cryptocurrency may stabilise at these support levels. The next upward wave in XRP's price trajectory could be facilitated by a bullish reversal that is triggered by a successful defence of these supports. If these levels are not maintained, there may be more bearish pressure on the price of XRP, which could push it lower to the most significant support at $1.5.

XRP Price Potential Rebound and Target Levels

It is anticipated that the price of XRP will confront resistance at $2.8, the first milestone on its upward trajectory, if it is able to recover from the designated support zones. A run towards the ultimate goal of $3.3450 would be made possible by a significant break over $2.8.

When this article was written, the price of XRP was $2.41, down 0.9% and 2% over the previous day and week, respectively. A 39% rise from the present price levels would be required to reach the $3.345 level. Additionally, this would place the price of XRP around its most recent all-time high of $3.4. The bullish momentum needed to hit $3.345 might also cause the price of XRP to hit a new all-time high from the point.

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