Ripple’s recent downtrend has persisted, resulting in the price falling below both the 100 and 200-day moving averages.
Despite this decline, XRP has reached a substantial support region, marked by the triangle’s lower boundary at $0.5, and a short-term reversal is anticipated.
The Daily Chart
A thorough examination of the daily chart reveals a pronounced decline in Ripple’s price, ultimately leading to its arrival at a critical and decisive support region. This support encompasses the static level of $0.5 and the lower boundary of the multi-month triangle. This particular range has effectively blocked bearish attempts over the past year, highlighting heightened demand near the $0.5 threshold.
Consequently, a bullish rebound is expected for Ripple, retracing towards the broken 100 and 200-day moving averages. However, in the event that sellers gain dominance over buyers, the most likely outcome would be a breach below this crucial level, extending the existing downtrend.
The 4-Hour Chart
A more focused examination of the 4-hour chart underscores the prevailing influence of sellers in the market. Despite this, the price has recently slightly breached a pivotal support region defined by the multi-month ascending trendline, inducing fear in the market.
However, it is crucial to note that the breakout is yet to be considered valid, as there is still potential for a false breakout, a trick often designed to liquidate prevailing long positions in the perpetual market.
In the event of a valid pullback, the price will likely initiate a renewed bearish leg, targeting the $0.47 support region. Continued monitoring of these critical levels will be essential for anticipating potential market movements and assessing the strength of Ripple’s current trend.
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Cryptocurrency charts by TradingView.