Outside Source
Ripple sellers have struggled to push the price below the critical $0.47 mark and the lower boundary of a triangle pattern for an extended period.
However, a bearish breakout could trigger a cascade, liquidating numerous long positions.
XRP Analysis
By Shayan
The Daily Chart
A detailed examination of the daily chart shows that Ripple sellers have been attempting to breach a significant support region that has aided the asset since mid-April. This crucial zone includes the $0.47 static support and the dynamic support of the triangle’s lower boundary.
Given the overall bearish sentiment in the market, a bearish breakout could lead to a substantial crash, liquidating many long positions in the perpetual markets. However, if market activity remains low, there is still potential for the current consolidation stage to continue with minimal volatility.
The 4-Hour Chart
On the 4-hour chart, recent price action indicates that following a sideways consolidation stage and the formation of an ascending flag pattern, sellers gained momentum, pushing XRP below the flag’s lower boundary.
This suggests a bearish market state, with sellers eager to drive the price toward lower thresholds. Ripple is currently hovering around a critical support region at $0.47. If sellers breach this crucial mark, a massive plummet is likely. However, Ripple’s upcoming trend direction will depend on the price action near this crucial support zone.
This article first appeared at CryptoPotato
