Calm before the storm for XRP after 6.5% weekly decline?

Ripple has encountered intense selling pressure near the key resistance zone, defined by the 100- and 200-day moving averages around $0.55.

This has led to strong rejection and subsequent decline. The asset is now near a crucial support region, which could trigger a period of sideways consolidation.

XRP analysis

By Shayan

The daily chart

On the daily chart, XRP saw an increase in selling activity as it approached the $0.55 resistance level, where the 100-day and 200-day moving averages cross. This area represents a major supply zone, and the rejection from this level led to a 14% drop in price.

Ripple is now testing the $0.5 support, a level that has acted as a solid base since mid-July. This support region may attract enough buying interest to stop the bearish momentum, leading to a consolidation phase before the next move.

The 4 hour chart

The 4-hour chart shows a more detailed look at Ripple’s bearish price action, with a series of lower highs and lower lows forming a clear downtrend. The price recently broke below the lower limit of the bearish flag pattern, confirming the continuation of the downtrend.

Ripple has now entered a major support zone between the Fibonacci retracement levels of 0.5 ($0.52) and 0.618 ($0.49). If the price manages to break below the Fibonacci level of 0.618, a further decline towards the $0.46 support is possible. However, if the asset finds support in this region, a period of short-term consolidation could occur.

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