Ripple failed to breach the $0.55 resistance region and experienced a significant plunge of 26%, arriving at the crucial support level of the 100-day moving average. However, the price is likely to consolidate within this range, encountering significant support.
Technical Analysis
By Shayan
The Daily Chart
On the daily chart, following Ripple’s rejection from the $0.58 level, its price suffered a massive decline, experiencing a whopping 26% drop. However, XRP is currently confronting significant support regions consisting of the 100-day moving average at $0.43 and the 61.8% Fibonacci retracement level at $0.44.
Considering the strength of these support levels, the price seems likely to enter a consolidation phase followed by high volatility. However, if selling pressure on Ripple pushes the price below the 100-day moving average, another drop could occur, which may flush out many long positions from the derivatives market.
The 4-Hour Chart
On the 4-hour chart, the price has formed a descending price channel. The recent rejection caused XRP to drop below the minor support level of $0.48 and consolidate without a clear direction. Presently, it faces two crucial levels: the $0.48 minor resistance zone and the lower trendline of the channel, which is approximately $0.415.
Based on Ripple’s recent behavior, the market appears to have entered a consolidation stage between $0.415 and $0.48 until a breakout from this range occurs.
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