- Ripple’s recent price action reflects a cautious market, with a temporary rebound from the critical $0.5 support zone toward the 200-day moving average.
- A rejection at the 200-day moving average could solidify the ongoing bearish trend for XRP.
- If XRP loses the $0.5 support level, it could potentially target the $0.46 mark.
Ripple’s XRP token has seen its price decline in recent weeks as the overall crypto market remains cautious. However, the token found some support near the key $0.5 level, which has historically been an important zone for buyers. Let’s take a closer look at the recent price action and analyze potential support and resistance levels.
XRP Daily Chart Analysis
On the daily timeframe, XRP faced renewed selling pressure after it failed to sustain gains near the 200-day moving average at $0.57. This key level has acted as strong resistance, and the breakdown below the 200-day MA suggests sellers are attempting to push the price lower.
Following the decline, Ripple found support at the significant $0.5 level. This is a historically critical area that has consistently served as a defensive zone for buyers over the past year.
Currently, the asset is retracing back toward the 200-day MA. However, another rejection at this level would likely complete the pullback and lead to further declines, potentially targeting the $0.46 mark.
XRP 4-Hour Chart Analysis
Zooming into the 4-hour chart, we can see XRP trading within a crucial support zone defined by the $0.5, $0.52, and $0.618 – $0.49 Fibonacci levels. This area has provided solid support over multiple months.
Ripple has also formed a descending wedge pattern near the $0.49-$0.52 range, with recent buying activity pushing the price toward the wedge’s upper boundary at $0.53. A breakout above this threshold could indicate a bullish rebound, potentially reaching the $0.55 resistance.
However, given the overall bearish market sentiment and recent downward trends, a rejection at this level followed by a decline toward the $0.5 support seems the more likely mid-term scenario.
Conclusion
Ripple’s XRP token is currently trading in a decisive zone near the $0.5 level. This key support has held up well historically but may be tested again if bulls cannot push the price back above resistance levels like the 200-day MA.
The overall market structure remains bearish, and XRP will likely follow broader trends in the near-term. A break below $0.5 would open the doors for a more significant decline, especially if the 200-day MA continues to reject any upside moves. Traders should watch price action closely here as we could see volatile swings play out over the coming days and weeks.
