According to CryptoPotato, Ripple's price has recently dropped below the critical 200-day moving average, signaling a bearish outlook for its trajectory. A detailed examination of the daily chart reveals a multi-week consolidation phase that unfolded after the rapid rebound above the 200-day MA in mid-August. Ripple's price exhibited slight volatility throughout this consolidation period, remaining near the 200-day MA, at approximately $0.51.
However, the scales tipped in favor of sellers as supply outpaced demand, leading to a surge in selling pressure and, consequently, a drop below the 200-day MA. This MA is typically considered a significant level of either support or resistance, and its breach underscores the prevalence of bearish sentiment in the market, with the potential for further downward movement. The overall outlook for Ripple is bearish, with the next likely destination being the critical support zone at $0.42.
Shifting our focus to the 4-hour chart, a well-defined multi-month downtrend becomes evident, characterized by Ripple's consistent formation of lower highs and lower lows. The price is grappling with the multi-month descending trendline, attempting to break above it. Given that this trendline is a resistance zone, the most probable scenario is a rejection, leading to another leg of bearish movement and potentially forming a new lower low. However, if buyers successfully maintain the price near this pivotal trendline and drive it above, the scenario could become bullish. Continuous vigilance in monitoring price fluctuations remains essential, as the interplay between support and resistance levels will significantly influence Ripple's immediate price trajectory.
