XRP Analysis
After breaking below the important dynamic support of the 200-day moving average, Ripple’s price entered a consolidation phase, retracing to test the MA and complete a pullback. If this pullback is successful, there is a high chance of further price depreciation for XRP in the short term.
The Daily Chart
Analyzing the daily chart, we can see a strong downtrend followed by an extended period of consolidation, causing the price to fall below the critical 200-day MA. This signifies a prevailing bearish sentiment and suggests potential downward movement. However, this scenario depends on a successful upward pullback that validates the breakout.
Currently, there is a small upward retracement occurring, potentially completing a pullback towards the breached MA. If the price fails to reclaim the 200-day MA, the next likely target is the critical support zone at $0.42.
The 4-Hour Chart
On the 4-hour chart, there is a well-defined multi-month downtrend in Ripple’s price with lower highs and lower lows. However, there has been a significant development as the price has broken above the trendline and shown a slight upward trend.
This shift in market trend brings XRP closer to the static resistance region of $0.55. A rejection around this range could indicate another bearish movement, while successfully pushing above it could lead to a bullish scenario with a potential surge aiming to break through key Fibonacci retracement levels.
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