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Ripple recently faced rejection at the key resistance level of $0.64, causing the price to drop toward the lower boundary of its current range, closely aligning with the 200-day moving average at $0.55.
Despite this pullback, the price is likely to experience a modest rebound, maintaining its sideways consolidation within this range.
XRP Analysis
By Shayan
The Daily Chart
A closer look at the daily chart shows that Ripple encountered strong selling pressure at the $0.64 resistance level, leading to a significant decline. The price has now retraced toward the lower boundary of its trading range, which coincides with the critical 200-day moving average at $0.55.
The bearish divergence observed between the price and the RSI indicator on the daily timeframe underscores the weakening bullish momentum, suggesting that sellers are attempting to push the asset below this important moving average.
However, XRP is likely to see a mild rebound at this level due to the potential demand, leading to continued sideways consolidation in the near term. If the $0.55 support is unexpectedly breached, a further decline toward the $0.53 level could quickly follow.
The 4-Hour Chart
On the 4-hour chart, Ripple’s price action confirms the rejection from the $0.64 resistance zone, with the price moving back toward the crucial support level of $0.55. This area has historically provided strong support and is likely to attract buying interest, potentially halting further declines. As a result, Ripple may find short-term support here, leading to a bounce back towards the upper boundary of its range at $0.64.
Overall, XRP is expected to remain within the $0.55-$0.64 range, with sideways price movement prevailing. However, if the $0.55 support fails, a bearish continuation could lower the price to the critical support zone between $0.52 (0.5 Fibonacci level) and $0.48 (0.618 Fibonacci level).
This article first appeared at CryptoPotato
