Here’s Why XRP Price Is at Risk of Losing $0.5 Support

The ongoing rally in the sixth largest cryptocurrency XRP witnessed a major roadblock at the $0.575 barrier. The long-wick rejection at this barrier reflects the overhead supply and the formation of a double-bottom pattern. The broader market sentiment continues to invalidate the buyer’s attempt and trigger a consolidation in several major altcoins. Will the BTC price reversal from $52K, plunge the XRP price back to $0.5?

Also Read: Ripple XRP Case Update: Financial, ODL Details Will Remain Sealed Until SEC Remedies Brief

Is XRP Price Heading to $0.5

The February month recovery in XRP price can be traced using a support trendline in the daily chart. From the last swing low of $0.485, the coin price will surge 14.5% to reach the current trading price of $0.55.

The coin price rebounded thrice from this support reflecting that the buyers continue accumulating this asset at dips, one of the key aspects for establishing recovery. However, the rally faces a minor road at $0.576 resistance, projected by a daily candle with long wick rejection.

The two reversals from this resistance indicate the possibility of a double-top pattern. This chart pattern often spotted at the major top indicates the XRP price may enter a new correction amid the weakening bullish momentum in BTC.

Currently trading at $0.55, the XRP price is down 1.46% and teases a breakdown below the $0.541 neckline support. A successful bearish breakdown will also pierce the support and intensify the selling momentum.

A post-breakdown fall may have plunged the XRP coin by 12% to hit $0.48.

Conversely, if the support trendline holds, the buyers may rechallenge the overhead resistance trendline to initiate a fresh rally

Also Read: XRP Whale Offloads 26 Mln Tokens As Ripple’s Extended Deadline Nears

Technical Indicator

• Bollinger Band: The midline of the Bollinger band indicator will act as additional pullback support for buyers,
• Moving Average Convergence Divergence: A bullish crossover between the MACD and the signal line indicates the current recovery is still intact.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.