Ripple after the crash: What's next for XRP price?

After the recent plunge, the price of Ripple (XRP) has fallen by more than 7% in the past week. The market's direction remains uncertain, especially after XRP's strong performance over the weekend but failed to maintain gains. The current price of XRP faces challenges at key support and resistance levels.

Key support level: $0.54

Key resistance level: $0.68

1. Sharp reversal in price

After briefly touching $0.66, XRP experienced a sharp correction, losing most of its gains since the end of September and almost returning to its previous level. This shows that buyers have failed to resist the selling pressure in the market amid the overall bearish market trend. The current reversal has temporarily stalled the uptrend of XRP.

2. Loss of momentum

From a technical perspective, the decline in price is reflected in the daily MACD indicator. The moving averages are about to form a bearish crossover, which further strengthens the market's expectations for a downward price trend. The histogram of the past four days also shows lower highs, indicating that sellers are dominating the market. This loss of momentum makes the hope of rising in the short term slim.

3. Sellers regain dominance

The recent price decline shows that the previous buying sentiment has faded. Buying has decreased significantly, and the upward momentum of prices has gradually faded. At present, the resistance level of $0.68 remains the key level that the market needs to break, while the support level of $0.54 is the level that XRP prices must hold in the next few days. It may take some time for the market to recover above $0.60, and sellers still dominate in the short term.

XRP is currently facing great downward pressure, especially with the loss of momentum and the sellers regaining dominance in the market. Although the support level of $0.54 provides some protection for the price, if buyers cannot quickly regain confidence, the price may continue to hover at a lower level. Investors need to pay close attention to market changes in the next few days, especially whether the bearish crossover of MACD will further increase downward pressure.