XRP Price Struggles to Hold Support at $0.5
After being forced to abandon its bullish case aiming for a breakout to $1 at $0.54, XRP price is struggling to hold support at $0.5. The sell-off in August in addition to trimming gains from $0.93 to the pre-Ripple vs. SEC ruling levels, has deprived the cross-border money remittance token the momentum to sustain a rebound. XRP price currently wobbles in a narrow range, with support at $0.5 and resistance at $0.55.
Main Breakdowns:
- Bulls need to ignore calls for further declines to $0.4 and $0.3, and seek fresh exposure to XRP longs.
- Failure to rally behind XRP implies that sellers will keep pushing the price lower and further delay the run-up into the next bull market.
- Traders should look for a buy signal from the Moving Average Convergence Divergence (MACD) indicator as long as the support at $0.5 holds.
- A breakout above the 50-day Exponential Moving Average (EMA) and the descending trendline could mark the beginning of a move to $0.85 and later to $1.
- XRP holds support but is trading below the monthly point of control (mPOC) and the monthly open (mOpen). Breaking above these levels will confirm the breakout.
XRP’s Path to $1 May Face Challenges
XRP price holds support but is trading below the monthly point of control (mPOC) at $0.5076 as well as the monthly open (mOpen) at $0.5114. Now that XRP has started a new bullish candle, lifting above these two key levels will serve as confirmation for the breakout. XRP is currently below the oversold region, suggesting a potential rebound above the previous hurdle at $0.55. However, if support at $0.5 weakens, investors should be prepared for losses to $0.48 and $0.4. The fading hype surrounding ETFs and a hike in interest rates are additional challenges.
Hot Take:
XRP’s struggle to hold support at $0.5 and the potential challenges it faces in reaching $1 indicate a lack of momentum and uncertainty in the market. While a breakout above key levels could lead to an upward movement, the current trend suggests that XRP may continue to face resistance. Traders should closely monitor indicators like the MACD and be cautious of weakening support. The crypto market remains volatile, and it is important to consider both bullish and bearish scenarios when making investment decisions.
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