Ripple’s price has been trapped inside a static range between $0.42 and $0.31 and is struggling to break ou. A consolidation stage within this range could be imminent as the cryptocurrency was recently rejected from a vital resistance level.
The Weekly Chart
Since 2021, Ripple has been declining, forming a falling wedge pattern on the weekly timeframe. Recently, the price experienced a slight plummet after being rejected from the wedge’s upper threshold.
The $0.31 price region currently serves as a significant support as it has been holding the price during the last four months, while the $0.55 region acts as a primary resistance. A shakeout is anticipated in the event of a decline below $0.31, and the wedge’s lower boundary will be Ripple’s next stop.
The Daily Chart
As depicted by the chart below, the rejection from the prolonged descending trendline has led to the breakdown of the 200-day moving average. Typically, the overview or bias for the price of an asset is determined by the asset’s positioning compared to the 200-day moving average. If the price drops below the MA, the overview is considered bearish, while the opposite also applies.
To conclude, the price drop below the 200-day moving average indicates that Ripple’s current outlook leans bearish. Nevertheless, the price is expected to consolidate in the range between the $0.31 and $0.44 levels.
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.