Ripple Faces Selling Pressure, but Pullback Confirms Breakout
Ripple has recently experienced increased selling pressure, causing its price to drop below a crucial support region that includes the wedge’s lower boundary and the 100-day and 200-day moving averages.
However, a completed pullback has emerged, confirming the breakout and suggesting a potential mid-term downward trend towards the $0.48 support region.
The Daily Chart: Breach of Support Area
On the daily chart, Ripple’s price dropped significantly, breaking its multi-month sideways consolidation range. This triggered sell-stop orders and intensified selling pressure, pushing the price below a crucial support area that includes the 100-day and 200-day moving averages and the lower boundary of the wedge.
Despite this, Ripple found support at $0.499 and retraced back to the breached level, completing a successful pullback. This indicates a valid breakout and hints at a potential mid-term downward trend towards the $0.48 support region.
The 4-Hour Chart: Impulsive Breach Below Support Region
A closer look at the 4-hour chart reveals an impulsive breach below a significant support region between the Fibonacci retracement levels of 0.5 ($0.61) and 0.618 ($0.58), which aligns with the lower boundary of the wedge. However, sellers encountered increased demand around $0.499 and the multi-month ascending trendline, leading to a retracement back towards the breached support region.
Ripple seems to be trading within a tight dynamic range, defined by resistance at the Fibonacci retracement levels of 0.5 ($0.61) to 0.618 ($0.58) and crucial dynamic support from the ascending trendline. As a result, a mid-term consolidation stage within this pivotal range is expected until a valid breakout occurs in either direction.
Hot Take: Ripple Faces Selling Pressure, but Pullback Confirms Breakout
Ripple has been under pressure as its price dropped below key support levels. However, a completed pullback indicates that the breakout is valid, potentially leading to a mid-term downward trend. On the daily chart, the breach of the support area triggered selling pressure and pushed the price lower. The successful pullback suggests that Ripple may continue towards the $0.48 support region. Similarly, on the 4-hour chart, the breach below the support region was met with increased demand, causing a retracement back towards the breached level. Ripple is currently trading within a tight range and may consolidate until a breakout occurs. Overall, while facing selling pressure, Ripple’s pullback confirms its breakout and sets the stage for potential further decline.
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