The XRP Price Roadblock: Will it Drop to $0.5?
The ongoing rally in XRP has hit a major roadblock at the $0.575 barrier, indicating overhead supply and the formation of a double-bottom pattern. While the broader market sentiment is invalidating buyer attempts and triggering consolidation in major altcoins, the question remains: will the BTC price reversal from $52K cause XRP to drop back to $0.5?
The February Recovery and Resistance
In February, XRP saw a recovery that can be traced using a support trendline on the daily chart. The coin price surged 14.5% from its last swing low of $0.485 to reach its current trading price of $0.55. Despite facing resistance at the $0.576 mark, with two reversals from this level, there is a possibility of a double-top pattern indicating a new correction for XRP.
This potential correction comes as the bullish momentum in BTC weakens.
Currently trading at $0.55, XRP is down 1.46% and may break below the neckline support at $0.541. If this bearish breakdown occurs, it could intensify selling momentum and result in a 12% drop to $0.48. However, if the support trendline holds, buyers may rechallenge the overhead resistance trendline for a fresh rally.
Technical Indicators
- Bollinger Band: The midline of the Bollinger band indicator will act as additional pullback support for buyers.
- Moving Average Convergence Divergence (MACD): A bullish crossover between MACD and the signal line indicates that the current recovery is still intact.
Hot Take: XRP’s Battle for Support and Resistance
The XRP price is currently facing a significant battle between support and resistance levels. The $0.575 barrier has proven to be a roadblock, suggesting a potential double-top pattern and a new correction for XRP. However, if the support trendline holds, buyers may have the opportunity to initiate a fresh rally. Keep an eye on the technical indicators, such as the Bollinger Band and MACD, to gauge the market sentiment and potential price movements. Will XRP drop back to $0.5 or continue its recovery? Stay tuned to find out!
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