XRP Faces Critical Support Test at $0.54 After Sharp Decline: Bullish Rebound or Bearish Trend Ahead?

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Ripple is experiencing a significant sell-off near the $0.64 resistance level, leading to a notable decline towards a key support zone at the 200-day moving average around $0.54.
The core issue now is whether this decline marks a temporary correction or the start of a more extended bearish trend.
Market analysts are closely monitoring Ripple’s movement around the $0.54 support to gauge future price action.

Analyzing Ripple’s price movement and future trading signals, this article gives a detailed view on the potential trends and implications for XRP.

XRP Faces Selling Pressure at Critical Resistance

Examining Ripple’s daily chart, it is evident that the recent bullish momentum faced robust resistance around the $0.64 mark. This resistance instigated a period of sideways consolidation, accompanied by a bearish divergence between the price and the RSI indicator. Subsequently, XRP experienced a notable 17% decline, bringing the price down to a vital support region.

This support includes the significant 200-day moving average at $0.54, which acts as a robust support level. Should XRP sustain its position above this level and rebound, it might indicate that the recent drop is corrective and that the larger bullish trend could potentially resume. In this scenario, buyers would aim to re-challenge the $0.64 resistance level, and possibly target even higher levels.

Indicators Suggest the Potential for Further Decline

On the contrary, if Ripple’s price penetrates below the 200-day MA with considerable selling momentum, it might suggest a transition towards a bearish trend. This scenario could place Ripple at risk of further declines, with the next significant support likely around the 100-day MA at $0.51, or even lower levels.

Ripple’s Performance on the Lower Time-Frame Chart

Delving into the 4-hour chart provides additional insights. After encountering major selling resistance near the $0.64 level, Ripple’s price initiated a significant bearish move, breaking below the ascending wedge’s lower boundary. This breakdown highlights the dominance of sellers in the market, suggesting potential sustained bearish corrections.

Short-Term Support Levels to Watch

Currently, Ripple’s price has approached a crucial support area around the $0.54 mark, where buying pressure might emerge. Nevertheless, if sellers successfully push the price below this critical threshold, it could trigger a long-squeeze event, further speeding up the bearish trend. In this adverse scenario, the next target for sellers would be the price range between the $0.51 and $0.48 Fibonacci levels.

Conclusion

In conclusion, Ripple’s price action around the $0.54 support level is critical. A rebound could signify a continuation of the bullish trend, targeting $0.64 and beyond. Conversely, breaking below this support could set off further declines, with key support levels at $0.51 and lower. Traders and investors should closely monitor these levels to determine potential future price movements.

The post XRP Faces Critical Support Test at $0.54 After Sharp Decline: Bullish Rebound or Bearish Trend Ahead? appeared first on COINOTAG NEWS.