Ripple (XRP) has seen a shift towards bearish momentum, breaking below its critical 200-day Moving Average (MA) at approximately $0.51. While a pullback is still possible, the overall trend is bearish, with $0.42 serving as the next significant support level to watch. The 4-hour chart confirms this bearish sentiment, although a potential bullish scenario remains if buyers can break above and confirm a multi-month descending trendline.
Key levels
- Critical resistance: $0.51 (200-day MA)
- Immediate support: $0.42
- Potential bullish turnaround: $0.55 (static support)
Technical analysis
The daily chart
Ripple recently broke below its crucial 200-day MA at around $0.51, signaling a bearish outlook. This level was seen as a pivot point for the asset; its breach marks a significant shift in market sentiment towards the bearish side. The price had been consolidating near this MA since mid-August but has now succumbed to selling pressure.
Although a pullback toward the 200-day MA is plausible, the primary expectation based on current momentum is for Ripple to target the next critical support level at $0.42. This forthcoming price action will likely determine XRP's immediate trajectory.
The 4-hour chart
The 4-hour chart shows a well-defined multi-month downtrend in Ripple's price, characterized by consistent lower highs and lower lows. The price is currently struggling against a descending trendline that serves as resistance.
If the price rejects this trendline, expect another leg downward, possibly establishing a new lower low. Conversely, a bullish scenario would unfold if buyers can maintain the price near this trendline and push it above, followed by a successful retest during a pullback. In this case, XRP could aim for the static support turned potential resistance at $0.55.
Conclusion
The current market sentiment for Ripple is bearish, prompted by the recent breach below the critical 200-day MA. The asset is eyeing the next significant support zone at $0.42. However, traders should keep an eye on the descending trendline on the 4-hour chart for any potential reversal. A break above could change the current outlook, but until then, caution and close monitoring of price action are advised.
Note: This analysis is for informational purposes only and should not be considered as financial advice. Always do your own research before making any investment decisions.
Trading foreign exchange, indices and commodities, on margin, carries a high level of risk and may not be suitable for all individuals. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange or other markets you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some, or all, of your initial investment. Therefore you should not invest money that you cannot afford to lose. Past performance is not a guarantee of future results. No guarantee is being made that any individual will be able to replicate our past performance results.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.