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Ripple has seen a slight rejection at the crucial $1.3 resistance, leading to a temporary period of consolidation. Nevertheless, a continuation of the corrective phase is expected for the short term, with the price’s primary target being the $0.9 support region.
By Shayan
The Daily Chart
Ripple recently surged to test the critical $1.3 resistance zone, a level closely aligning with its prior all-time high. This price range is pivotal, as reclaiming it could open the path toward a new all-time high by year-end. However, the $1.3 level is also laden with selling pressure and supply, leading to a slight rejection.
The rejection signals the start of a corrective consolidation phase as the market digests the recent impulsive rally.
This correction is supported by the RSI indicator, which shows overbought conditions, reinforcing the expectation of a temporary retracement. For the short term, XRP is likely to consolidate within the $0.9-$1.3 range. This phase is necessary to prepare the market for the next potential bullish breakout while relieving overbought pressures.
The 4-Hour Chart
On the 4-hour timeframe, Ripple’s rejection at the $1.3 resistance is more pronounced, with the price entering a sideways consolidation characterized by minimal volatility. This phase is crucial for stabilizing the market and sustaining a long-term bullish structure.
The most likely scenario includes a deeper retracement toward the $0.9-$1.0 region, aligning with Ripple’s prior swing highs and the critical 0.5 ($0.88) and 0.618 ($0.78) Fibonacci retracement levels. These levels act as robust support zones, providing a foundation for Ripple to resume its upward trajectory.
This corrective phase is essential for ensuring a healthy uptrend, mitigating the risk of overextension, and allowing Ripple to consolidate momentum before attempting to breach the $1.3 resistance and aim for new highs.
This article first appeared at CryptoPotato
