XRP Analysis: Ripple Faces Key Support Level
After failing to break the $0.74 mark, Ripple is undergoing a corrective leg and retracing towards the 100-day and 200-day moving averages at around $0.55. However, there is a crucial support region that could prevent further downward movement in the short term.
The Daily Chart: Ripple Encounters Resistance
The daily chart shows that Ripple faced strong selling pressure when attempting to surpass $0.74, resulting in a correction phase towards a pivotal support region. This critical range includes the 100 and 200-day moving averages and a static support level at $0.54, providing significant psychological support for Ripple.
Considering recent price action and the importance of the $0.54 support range, it is likely that consolidation will continue with volatility around this key level. If buyers enter the market again, it could initiate an uptrend to reclaim the $0.74 resistance threshold.
The 4-Hour Chart: Resistance and Retracement
Looking at the 4-hour chart, Ripple’s upward movement faced a strong barrier within a critical resistance region between the Fibonacci retracement levels of 0.5 and 0.618 ($0.6799-$0.7408). This led to intensified selling pressure and a notable decline marked by an extended retracement.
If the retracement continues, Ripple’s multi-month ascending trendline and the static support region at $0.48 are expected to act as major supports. However, breaching the 0.618 level of the Fibonacci retracement would invalidate this scenario and potentially trigger a significant upward movement for Ripple’s price.
Hot Take: XRP’s Short-Term Outlook
XRP is currently facing a crucial support level at $0.54, which could determine its short-term trajectory. The consolidation phase is expected to continue with volatility around this key mark. If buyers regain control, an uptrend may be initiated to reclaim the $0.74 resistance. However, breaching the 0.618 level of the Fibonacci retracement would indicate further upward potential for XRP. Keep an eye on these levels as they could shape XRP’s price movement in the coming days.
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