Since Ripple entered a crucial demand zone this month, the price has remained trapped. However, it paints a gloomy picture on the daily chart with a potential breakdown. The price may roll back to the bottom.
Following past months of bearish, XRP has lost over 30% of its valuation in the last 60 days and appears not to stop any moment from now, with the latest sell signal on the daily time frame.
It recently rejected a descending trendline, which has been serving as resistance for two months, and continued to show signs of weakness on the daily chart. This week’s trading started with a little-to-no volatility, but the selling increased and is now looking poise for a breakdown.
The bearish picture is getting clearer on the 4-hour chart following a drop from $0.62. The selling volume has increased notably on the hourly chart with a steady drop in the last 24 hours.
Going back to the daily chart, the $0.578 and $0.55 levels have become a difficult demand zone for XRP since the start of the year.
While this zone poses a threat to the bears, a crackdown from there could position the market in a more bearish condition as it rolls back to the bottom. Overall, the bearish trajectory remains intact on the daily.
XRP’s Key Level To Watch
Source: Tradingview
A crack below this demand zone – the $0.55 level – could bring the price to a low of $0.50 before restarting bullish. A further dip could send the price to an extremely oversold level of $0.45 – the bottom price.
If the price recovers above the $0.578 and $0.623 levels, which lies above the resistance line, the potential resistance level for buying would be $0.645, $0.70 and $0.75 respectively.
Key Resistance Levels: $0.645, $0.70, $0.75
Key Support Levels: $0.55, $0.50, $0.45
- Spot Price: $0.565
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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