Ripple faced significant selling pressure near the $0.64 resistance level, which led to a sharp decline to a critical support area near the 200-day moving average at $0.54.

The big question now is whether this decline is just a temporary correction or the start of a longer bearish phase.

XRP Analysis

Author: Shayan

Daily chart

A deep dive into Ripple’s daily chart shows that the recent bullish surge encountered significant resistance at the critical $0.64 threshold, leading to a period of sideways consolidation. During this phase, a notable bearish divergence emerged between the price and the RSI indicator. This was followed by a significant 17% decline, which brought the price down to a critical support zone.

The latter includes the key 200-day moving average at $0.54, which acts as a strong support level. This area is potentially filled with ample demand and buying interest. If XRP can hold above the $0.54 support and bounce, it would indicate that the recent decline is likely a correction and the broader bullish trend could resume. In this scenario, buyers would be looking to retest the $0.64 resistance level and potentially target higher levels.

On the other hand, if the price breaks below the 200-day moving average with strong selling momentum, it would signal a potential shift to the bearish trend. This could expose Ripple to further downside risk, with the next major support likely to be around the 100-day moving average at $0.51 or even lower. At the time of writing, the price is trying to trend lower.

4 hour chart

On the 4-hour chart, facing increased selling pressure near the critical $0.64 level, Ripple price began a significant bearish move, breaking below the lower boundary of the rising wedge.

This action indicates a strong seller presence in the market and suggests the possibility of a sustained bearish correction.

The price has now reached an important support area around the $0.54 mark, where buying pressure may emerge in the coming days.

However, if sellers manage to push the price below this critical threshold, a long-squeeze event may occur, which will further accelerate the bearish trend. In this bearish scenario, the next target for sellers will be the price range between the 0.5 ($0.51) and 0.618 ($0.48) Fibonacci levels.