Will the $0.55 support level hold after XRP was rejected at $0.6?

Ripple has been trading within a tight range of $0.55 to $0.63, and the price recently faced a significant rejection near the critical resistance level of $0.64, pulling back towards the lower bound of the rank

Despite this pullback, the asset is expected to go through a period of sideways consolidation within this range until a breakout occurs.

XRP analysis

By Shayan

The daily chart

A closer examination of the daily chart reveals that Ripple has been bounding within a crucial range, capped by the $0.64 resistance and the $0.55 support level. Recently, it encountered increased selling pressure near the upper limit of the range at the critical resistance of $0.64, which led to a major rejection.

Consequently, the asset has retreated towards the lower boundary of the range, which aligns with the 200-day moving average at $0.55, forming a strong support barrier. Given current market conditions, Ripple is expected to experience a sideways consolidation within this range until a decisive breakout occurs. A cascade towards the $0.50 threshold is highly likely if a bearish breakout occurs.

The 4 hour chart

On the 4-hour chart, Ripple’s price action shows a clear rejection of the resistance zone at $0.64, a level that has consistently acted as a formidable barrier due to increased selling pressure. This rejection has resulted in a downtrend, taking the asset to a crucial support area around $0.55.

Ripple is currently consolidating within the $0.55-$0.64 range, with the price close to a possible breach of the lower limit. Should this breach occur, a bearish continuation towards the crucial support region, marked by Fibonacci levels of 0.5 ($0.52) to 0.618 ($0.48), is likely. Conversely, a bullish reversal targeting the upper end of the range at $0.64 could occur if buying pressure emerges.

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