The recovery trend of #XRP price recently encountered a major obstacle at the $0.55 resistance level. This area, combined with bearish market sentiment, prevented further upward movement and resulted in the price entering a sideways trend. Currently, XRP is trading within a narrow range formation between $0.54 and $0.486.
On the daily chart, the XRP price has been bouncing off these levels twice over the past two weeks, indicating that traders are paying attention to these key levels. As of now, the price is at $0.50, experiencing a 2.87% loss and pulling back from the aforementioned resistance. If bullish momentum decreases, the price may fall another 3.4% to test the support at the bottom.
For traders interested in XRP, a breakout from this range formation will be important in determining the future trend. While the current trend appears to be bullish, a potential breakout above $0.55, confirmed by a daily candle closing above that level, would strengthen the bullish momentum and could push the price above $0.6.
However, if the ongoing range formation results in a bearish breakdown below the $0.486 support, selling pressure on XRP will increase significantly. This breakdown would provide additional resistance for sellers, potentially leading to a swift drop to $0.4475, representing an 8% loss.
Technical indicators also support the possibility of a bearish correction. The 50-day exponential moving average (EMA) hovering around the $0.486 support level adds strength to this level. Additionally, a significant bearish divergence in the daily relative strength index (RSI) slope suggests a higher likelihood of a bearish correction.
In summary, the XRP price is currently trapped in a narrow range formation, and a breakout above $0.55 or a breakdown below $0.486 will determine the future trend. Traders should monitor these key levels and consider the signals provided by technical indicators before making any investment decisions.