Ripple has recently undergone a significant plunge, witnessing a 34% decline and breaking below the 100 and 200-day moving averages and a multi-month ascending trendline. However, the price seems likely to enter a period of consolidation in the short term, followed by heightened volatility.
XRP Analysis
By Shayan
The Daily Chart
A careful examination of the daily chart reveals that Ripple has encountered intensified selling pressure, leading to a substantial downturn.
Following this decline, the price breached several critical support levels, including the 100—and 200-day moving averages and the multi-month ascending trendline. However, XRP ultimately settled around a pivotal support region located at $0.47, which has attracted notable demand.
Currently, Ripple is undergoing a pullback to the broken trendline. A successful completion of this pullback would signal a continuation of the bearish trend. However, the cryptocurrency’s broader outlook suggests a period of sideways consolidation near the crucial $0.47 mark.
The 4-Hour Chart
A closer examination of the 4-hour chart reveals significant fluctuations following the formation of a potential head and shoulders pattern, culminating in a pullback to its neckline. Consequently, the price experienced a notable decline, eventually finding support at the critical region of $0.47. This level acts as a robust barrier for Ripple sellers, potentially preventing further declines in the medium term.
However, the current lack of momentum suggests a prolonged consolidation phase between the $0.47 support and the $0.55 resistance until market dynamics favor either buyers or sellers.
In the event of a successful breach below the pivotal support level, an extended bearish trend toward the $0.4 support zone could ensue. Conversely, should buying pressure emerge around the $0.47 range, a rebound toward the $0.55 resistance level becomes likely.
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