As XRP approaches the pivotal support zone at $0.55, the crypto community is on high alert. Breaching this zone could lead to volatile price fluctuations, with the potential for the currency to oscillate before finding its next firm footing at the $0.45 support level.
Ripple’s journey has been tumultuous of late. After facing significant resistance at the $0.85 and $0.92 marks, the currency has been in a prolonged correction phase. This resistance was particularly pronounced post the SEC’s major announcement in July. Despite hopes of a recovery in August, the price remained subdued, never truly threatening those resistance levels.
Historically, Ripple’s price trajectory has been telling. A breakout from a Descending Triangle saw the price soar, touching the $0.92 resistance, buoyed by a favorable legal ruling. This was reminiscent of its performance in early 2022.
However, the euphoria was short-lived. With the Relative Strength Index (RSI) exceeding 80, indicating an overbought market, profit-taking activities began, exerting downward pressure on the price, reports altFINS. The subsequent consolidation in a Pennant pattern only added to the bearish sentiment, with the price breaking below support, hinting at a potential slide towards the $0.55 support. Key Fibonacci Retracement support levels to watch include $0.70 (50%) and $0.56 (78%).
A meticulous analysis of the daily chart underscores the prevailing selling pressure. Currently, XRP is inching towards a crucial support zone, which includes the significant $0.55 support level and the robust 100-day moving average. This zone is anticipated to act as a bulwark against further declines, potentially catalyzing a rally towards the vital $0.8 mark.
From a momentum perspective, the outlook appears bearish, albeit with a silver lining. While the MACD Line remains below the MACD Signal Line and the RSI is under 45, there’s a glimmer of hope. The rising MACD Histogram bars suggest that the momentum might be bottoming out, hinting at a potential upswing on the horizon.
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Show more +In terms of support and resistance, the immediate Support Zone lies at $0.55, followed by $0.45. Conversely, the Resistance Zone starts at $0.68 (which previously acted as support), extending to $0.85 and then $0.92.
Investment Insight: Given the current indicators and market sentiment, it’s a challenging decision for potential investors. While the rising MACD Histogram bars indicate a possible momentum shift, the prevailing bearish sentiment cannot be ignored. For those considering an investment, it might be prudent to adopt a wait-and-watch approach. Observing how XRP behaves around the $0.55 support zone will be crucial. If the currency demonstrates resilience at this level, it could be an opportune moment to buy. However, if it breaches this support, waiting for further declines before making a move might be the wiser strategy.
You can review our XRP price prediction here.
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