Ripple’s recent activity has revealed a bearish trend with its 200-day moving average at $0.53.
This resistance stopped the cryptocurrency’s previous upward momentum, sending the price back to the $0.5 support level. This therefore raises concerns about its prospects.
XRP analysis
Author: Shayan
Daily chart
On the daily chart, XRP recently faced selling pressure after a minor pullback towards the 200-day moving average resulted in a sharp reversal. This resistance stopped the sustained bullish momentum, forcing Ripple to revisit the $0.5 support area.
This level has consistently acted as a stronghold for buyers in recent months, making it a critical area for sellers looking to cut prices. XRP is currently trading in the $0.5-$0.53 range and the upcoming breakout is likely to define the next medium-term trend.
4 hour chart
The 4-hour chart provides a closer look at Ripple’s consolidation in an important support zone between the 0.5 ($0.52) and 0.618 ($0.49) Fibonacci retracement levels.
XRP recently encountered resistance near the 0.618 level and the upper boundary of the wedge formation, indicating seller activity at this stage.
If the cryptocurrency breaks through this resistance level, a bullish bounce towards the $0.55 zone is possible. However, given the broader bearish sentiment, continued consolidation or a bearish breakout below $0.5 appears more likely in the near term. A decisive break below $0.5 would signal a potential sustained downtrend.
