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Ripple Price Analysis: XRP Needs to Stay Above This Key Level to Avoid Further Declines

CryptoPotato / 09.09.2024 / 10:56
Ripple Price Analysis: XRP Needs to Stay Above This Key Level to Avoid Further Declines

Ripple has undergone another sharp drop, breaking below the critical 100-day moving average of $0.53.

This breakdown underscores the bearish outlook for the asset, with the price likely to continue its downtrend after a period of temporary consolidation.

XRP Analysis

By Shayan

The Daily Chart

A closer look at the daily chart shows that Ripple faced significant selling pressure, leading to a break below the crucial 100-day moving average at $0.53. The breach of the 100- and 200-day moving averages indicates a strong bearish signal, affirming the dominance of sellers in the market. Ripple is retracing toward the broken MA, attempting to complete a pullback.

If sellers regain control at this level, XRP is expected to continue its downward trend toward the $0.48 support zone. A consolidation phase between the $0.48 support and the $0.54 resistance is anticipated in the mid-term.

The 4-Hour Chart

On the 4-hour timeframe, Ripple has broken below the lower boundary of a descending wedge pattern, highlighting the prevailing bearish sentiment. The price is now attempting to pull back to the broken trendline, which could confirm the breakout.

Simultaneously, XRP has reached a critical support zone defined by the 0.5 ($0.52) to 0.618 ($0.48) Fibonacci retracement levels, where demand may emerge and temporarily halt the decline.

Ripple is trading within a narrow range, constrained by the 0.5 Fib level and the broken wedge’s lower trendline. A breakout from this range will determine the next move in the short term.

 

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