According to CryptoPotato, Ripple has recently faced a bearish decline, leading to increased volatility and fluctuations. The price is expected to consolidate near the $0.42 region before making its next significant move. An in-depth analysis of the daily chart shows that Ripple has been in a downtrend, marked by a multi-month bearish price channel. Recently, Ripple was rejected from the channel’s upper boundary at $0.48, resulting in a significant long liquidation cascade and a sharp drop in its price.
Currently, the cryptocurrency has reached a critical support region, which includes the channel’s middle boundary and the crucial $0.42 support area. This region has seen increased activity and heightened volatility. A period of consolidation within the range between $0.42 and the channel’s upper threshold of $0.47 is expected in the short term. If the price breaks below the critical $0.42 support region, the continuation of the bearish trend will become more likely.
On the 4-hour chart, after a sudden plunge, the price reached the crucial $0.42 support region and encountered increased buying activity. As a result, Ripple printed a bullish rebound, retracing toward a significant resistance region, which includes the range between the 0.5 ($0.4353) and 0.618 ($0.4480) Fibonacci levels. This zone serves as the main target for the bullish corrective stage. If the price is rejected near this critical threshold, the continuation of the bearish trend is more likely, with the $0.38 support region being the main target for sellers. Conversely, if the price successfully surpasses this resistance region, the continuation of the bullish retracement toward the $0.47 resistance zone becomes likely. Therefore, the price action near these key Fibonacci levels is crucial for determining Ripple’s upcoming movements.