Can $0.5 Support Mark a Turning Point in Correction?

The XRP price has been in a correction phase for over a month now, where it plunged from the top of $0.938 to $0.4226 low accounting for a 54.5% loss. However, this falling price found suitable support at the long-coming support trendline aligned with the $0.5 psychological level, offering buyers a platform to counterattack. Can these support bolster buyers for a fresh recovery rally?

Also Read: Ripple Now In Bank for International Settlements (BIS) Panel; XRP Rally Ahead?

XRP Daily Chart: Key Points

• An ascending trendline keeps the long-term trend bullish for XRP holders
• An upside breakout from the $0.5948 mark may bolster a bullish recovery
• The intraday trading volume in the XRP is $1.6 Billion, indicating a 42% gain.

Source: Tradingview`

Although the significant sell-off on August 17th breached the $0.564 support, the daily chart indicated that by the close of the day, more than half of the intraday loss had been regained. A long-wick rejection attached to the daily candle reflects the accumulation of buyers at a discounted price.

This rejection sign came at the combined support ascending support trendline aligned and $0.5 psychological level, offering buyers a suitable footing to turn the price higher. With an intraday of 4.67%, the XRP price currently trades at $0.54 and is likely to retest the $0.564 resistance. 

For the XRP coin to undermine the prior breakdown, the buyers need to break above the August 17th high of $0.5948. This breakdown will break the seller’s weapon and bolster buyers for recovery to $0.667, followed by $0.854, and $0.933.

Will XRP Correction Fall Below $0.5?

The XRP holders must closely watch the price retest to the recently reclaimed resistance of $0.564. This retest could determine the possibility of further downfall or trend reversal. If the altcoin price shows suitability below the aforementioned level, the sellers may reattempt to break below $0.5 or ascending support trendline.

• Bollinger Band: A downtick in the lower band of the Bollinger band indicator shows the bearish momentum in active.
• Relative Strength Index: The RSI slope potential break above the 40% mark would offer additional confirmation on a bullish reversal.