Ripple (XRP) recently faced a setback at the $0.64 resistance level, causing the cryptocurrency’s price to drop towards the lower end of its current trading range, closely aligning with the 200-day moving average at $0.55. Despite this pullback, the price is anticipated to sustain its sideways movement within this range and see a slight recovery.
What Does the XRP Chart Show?
Upon closer examination of the daily chart, Ripple experienced significant selling pressure at the $0.64 resistance, resulting in a notable decline. The price has retracted towards the lower boundary of its trading range, coinciding with the crucial 200-day moving average at $0.55. Access COINTURK FINANCE to get the latest financial and business news.
The bearish divergence observed between the price and the RSI indicator on the daily chart highlights diminishing bullish momentum. This suggests that sellers are striving to push the price below this key moving average. However, due to potential demand, XRP is expected to see a minor recovery at this level, leading to continued sideways consolidation shortly. If the $0.55 support level fails, a further drop towards $0.53 could ensue.
Will XRP Find Support on the 4-Hour Chart?
The 4-hour chart corroborates that Ripple’s price action was rejected from the $0.64 resistance, with the price returning to the crucial $0.55 support level. Historically, this area has offered strong support and is likely to attract buying interest, potentially staving off further declines. Consequently, Ripple may find short-term support here, leading to a rebound towards the upper boundary of the $0.64 range.
Overall, XRP is expected to remain within the $0.55 to $0.64 range, characterized by sideways price action. However, if the $0.55 support level fails, the bearish trend may persist, pushing the price down to the critical support region between $0.52 (0.5 Fibonacci level) and $0.48 (0.618 Fibonacci level).
Actionable Insights
- Monitor the $0.55 support level closely; a breach could lead to rapid decline towards $0.53.
- Observe buying interest at the $0.55 level for potential short-term gains.
- Stay updated on Ripple Labs’ legal developments and new projects as they could significantly impact XRP’s price movements.
Beyond these technical trends, events concerning Ripple Labs are expected to continue affecting XRP’s price. The outcome of the legal battle with the SEC and the company’s launch of a stablecoin project could have a positive influence on XRP’s valuation.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/ripple-encounters-resistance-seeks-support-levels