According to CryptoPotato, Ripple has experienced significant selling pressure near the $0.64 resistance level, resulting in a sharp decline toward a critical support area around the 200-day moving average at $0.54. The primary concern now is whether this drop is a temporary correction or the start of a more prolonged bearish phase.

An analysis of Ripple’s daily chart shows that the recent bullish surge faced substantial resistance at the $0.64 threshold, leading to a period of sideways consolidation. During this phase, a notable bearish divergence appeared between the price and the RSI indicator, followed by a 17% decline, bringing the price down to a critical support zone. This zone includes the key 200-day moving average at $0.54, acting as a strong support level potentially filled with sufficient demand and buying interest. If XRP can maintain its position above the $0.54 support and rebound, it would suggest that the recent decline is likely a correction, and the broader bullish trend could resume. In this scenario, buyers would aim to retest the $0.64 resistance level and possibly target higher levels. Conversely, if the price breaks below the 200-day MA with strong selling momentum, it would signal a potential shift toward a bearish trend, putting Ripple at risk of further declines, with the next major support likely around the 100-day MA at $0.51 or even lower.

On the 4-hour chart, after facing increased selling pressure near the critical $0.64 level, Ripple’s price initiated a significant bearish move, breaking below the ascending wedge’s lower boundary. This action indicates a strong presence of sellers in the market and suggests the potential for sustained bearish retracements. Currently, the price has reached a crucial support region around the $0.54 mark, where buying pressure might emerge in the coming days. However, if sellers manage to push the price below this critical threshold, a long-squeeze event could occur, further accelerating the bearish trend. In this bearish scenario, the next target for sellers would be the price range between the 0.5 ($0.51) and 0.618 ($0.48) Fibonacci levels.