XRP’s downward trend may persist, potentially targeting the $0.5 level in the near future.
XRP is now testing a crucial support zone, defined by the flag’s lower boundary and Fibonacci retracement levels of 0.5 ($0.52) and 0.618 ($0.48).
XRP is going through a remarkable selling pressure which is around the $0.65 resistance zone, due to which it has hit a declining stage. The downward momentum indicates a possible transition to bear market control as prices pierce the lower limit of ascending wedge formation.
XRP’s downward trend may persist, potentially targeting the $0.5 level in the near future.
XRP experienced a significant surge on the daily chart, reaching the upper boundary of the ascending wedge and the key resistance level of $0.65. However, it encountered strong resistance, leading to a substantial rejection.
The Analysis
This level has historically capped price increases, aligning with previous swing highs. Following this rejection, XRP entered a critical range of $0.5-$0.55, where short-term price stabilization is anticipated.
Notably, the break below the wedge’s lower trendline suggests a bearish outlook. If XRP attempts to retest the broken wedge, it may face increased selling pressure, potentially pushing the price down to the $0.5 support level.
The current momentum indicates a likelihood of further downward movement, making the $0.5 level a crucial threshold for XRP to maintain. Investors should monitor this level closely for potential breakdowns or consolidations.
What does the chart indicate about?
On the 4-hour chart, XRP experienced a brief, deceptive surge beyond $0.65, attracting significant buying interest. However, intense selling pressure swiftly reversed the gains, causing the price to plummet back into the flag pattern.
XRP is now testing a crucial support zone, defined by the flag’s lower boundary and Fibonacci retracement levels of 0.5 ($0.52) and 0.618 ($0.48). This range is anticipated to provide temporary stability, potentially sparking a short-term corrective bounce and sideways movement before the market determines its next major direction.
The current support level is critical, as a breakdown could signal further losses, while a hold may precipitate a brief recovery.
