XRP Can Stage a Rally at This Level, Despite 17% Weekly Crash (Ripple Price Analysis)

Ripple’s price has experienced a notable downturn owing to the recent rapid drop in Bitcoin’s value. However, amidst this scenario, a glimmer of hope emerges for a potential short-term interruption in the prevailing downtrend.

This optimism arises as the price approaches a robust support zone marked by the 200-day moving average.

Technical Analysis

By Shayan

The heightened selling pressure and bearish sentiment in the market, which has led to a substantial decrease in Ripple’s price, is apparent. Consequently, this downturn has effectively halted the previous bullish momentum and resulted in an extended rejection. This decline has pushed the price below both the 100-day and 200-day moving averages, positioned at $0.55 and $0.49, respectively.

However, upon reaching the significant support level at approximately $0.42, the price encountered noteworthy support, leading to a rebound that immediately propelled it above the 200-day moving average.

This particular support zone carries the potential to arrest further downward movement and potentially facilitate a brief consolidation phase.

Notably, the price is currently confined within a narrow range delineated by the 100-day and 200-day moving averages. A breakout from this range could potentially serve as an indicator of Ripple’s imminent trajectory. This breakout might signify either a corrective phase before a continuation of the downtrend or a reversal targeting the resistance level at $0.85.

Source: TradingView

The 4-Hour Chart

Shifting the focus to the 4-hour chart reveals that the price had been undergoing an extended uptrend, reaching a yearly peak of around $0.95. Nevertheless, a recent decline prompted a retracement back to a multi-month uptrend, which has consistently provided robust support to the price movement.

While the cryptocurrency garnered support upon reaching this pivotal uptrend line and experienced a slight rebound, the prospect of another downward movement remains plausible.

Such a scenario could potentially drive the price beneath this critical dynamic support level. In such a case, a subsequent drop toward the static support at $0.42 becomes increasingly likely.

On the flip side, if buyers effectively sustain the price in the vicinity of this pivotal trendline, it could catalyze a fresh surge toward the $0.85 threshold. Such a development would inject heightened volatility into the market. Regardless of the outcome, monitoring price fluctuations is essential, as the interplay between these support and resistance levels will play a decisive role in shaping the immediate trajectory of Ripple’s price action.

Source: TradingView

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

Source link

Leave a Comment