Is XRP About To Crash Deep Below $0.5?

Ripple’s recent activity has highlighted a bearish trend, with a rejection of the 200-day moving average of $0.53.

This resistance has halted the cryptocurrency’s previous bullish momentum, sending the price back to the $0.5 support level. Therefore, this raises concerns about its prospects.

By Shayan

The daily chart

On the daily chart, XRP recently encountered selling pressure after a minor pullback towards the 200-day moving average, which led to a sharp rejection. This resistance has halted sustained bullish momentum, causing Ripple to re-visit the $0.5 support region.

This level has consistently acted as a stronghold for buyers in recent months, making it a critical area for sellers looking to reduce the price. XRP is currently trading within the $0.5-$0.53 range, with the impending breakout likely defining the next mid-term trend.

Source: TradingView The 4-hour chart

The 4-hour chart provides a closer look at Ripple’s consolidation within a crucial support zone between the Fibonacci retracement levels of 0.5 ($0.52) and 0.618 ($0.49).

Recently, XRP has found resistance around the 0.618 level and the upper boundary of its wedge formation, suggesting seller activity at the moment.

If the cryptocurrency breaks this resistance level, a bullish bounce towards the $0.55 area is possible. However, given the broader bearish sentiment, a continuation of the consolidation or a bearish breakout below the $0.5 level seems more likely in the near term. A decisive break below $0.5 would indicate a possible sustained downtrend.

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