Ripple has been experiencing a slight corrective consolidation stage following a notable plummet toward the $0.5 region.
Nevertheless, the asset faces a significant resistance region, potentially leading to rejection and a subsequent decline aiming to reclaim the $0.5 support.
XRP Analysis
By Shayan
The Daily Chart
Ripple’s price recently experienced a significant decline toward the $0.5 support region, a level that has acted as a reliable foundation for the asset in recent months. After reaching this critical support zone, XRP entered a corrective consolidation phase, retracing toward the previously broken 100-day moving average of around $0.57.
This corrective phase is characterized by low market activity and minimal volatility, which often signals the potential completion of a pullback. The 100-day MA now represents a crucial dynamic resistance level. The pullback will likely be completed if selling pressure increases around this point and rejection occurs.
Ripple could resume its bearish trend, targeting the $0.43 support zone as the next long-term objective. Conversely, a breakout above the 100-day MA could trigger a short liquidation event, potentially resulting in a rally toward $0.62.
The 4-Hour Chart
On the 4-hour chart, Ripple’s recent downtrend found support at the 0.5 ($0.52) and 0.618 ($0.49) Fibonacci retracement levels, key demand zones in recent months. This decisive support region halted the decline, allowing for a slight consolidation toward the $0.56 resistance level.
Currently, XRP is emerging inside a bearish continuation flag pattern, which suggests the potential for further downside. If the price breaks below the flag’s lower boundary, sellers will likely attempt to push it below the 0.5 Fib level ($0.52) to resume the bearish decline. However, a breakout above $0.56 could trigger short liquidations, leading to a sharp rally as traders close their short positions.
SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.