XRP Analysis
After a period of sideways movement, the price of XRP suddenly dropped below the range it had been trading in. This unexpected decline indicates a bearish sentiment in the market.
Ripple Price Analysis: The Daily Chart
Looking at the daily chart, we can see that Ripple has broken below its consolidation range and experienced a significant cascade, causing sell-stop orders to be triggered. This pushed the price below important support levels, including the 100-day and 200-day moving averages and the $0.57 static support range. Breaking below these levels confirms a bearish dominance in the market.
The price has since retraced back to the breached level, potentially completing a pullback. If this is confirmed, Ripple’s price may continue to decline towards the $0.48 support region.
However, there is a small chance that the breakout was false and the price may rise back above the breached range. If this happens, we could see a new surge targeting the $0.7 resistance threshold.
The 4-Hour Chart
An analysis of the 4-hour chart shows a significant breach below a crucial support region, aligned with the lower boundary of a wedge pattern. This break indicates that sellers have control in the market.
However, the price found support at $0.51 and an ascending trendline, leading to an immediate reversal and a retracement towards the breached support region acting as resistance.
Ripple seems to be trading within a defined range, with resistance between $0.61 and $0.58 and support at $0.51. A consolidation phase within this range is expected in the mid-term.
Hot Take: XRP Faces Bearish Sentiment After Cascading Breakout
After breaking below its consolidation range, XRP has faced a cascade of selling pressure, signaling a prevailing negative sentiment in the market. The price has retraced back to the breached level, potentially completing a pullback. However, there is a possibility of a false breakout leading to a new surge if the price rises above the breached range. On the 4-hour chart, XRP experienced an impulsive breach below a significant support region but found support at $0.51. Ripple is now expected to consolidate within the range defined by resistance levels at $0.61 and $0.58 and support at $0.51.
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