Ripple failed to breach the $0.55 resistance region and experienced a significant plunge of 26%, arriving at the crucial support level of the 100-day moving average. However, the price is likely to consolidate within this range, encountering significant support.
By Shayan
On the daily chart, following Ripple’s rejection from the $0.58 level, its price suffered a massive decline, experiencing a whopping 26% drop. However, XRP is currently confronting significant support regions consisting of the 100-day moving average at $0.43 and the 61.8% Fibonacci retracement level at $0.44.
Considering the strength of these support levels, the price seems likely to enter a consolidation phase followed by high volatility. However, if selling pressure on Ripple pushes the price below the 100-day moving average, another drop could occur, which may flush out many long positions from the derivatives market.
On the 4-hour chart, the price has formed a descending price channel. The recent rejection caused XRP to drop below the minor support level of $0.48 and consolidate without a clear direction. Presently, it faces two crucial levels: the $0.48 minor resistance zone and the lower trendline of the channel, which is approximately $0.415.
Based on Ripple’s recent behavior, the market appears to have entered a consolidation stage between $0.415 and $0.48 until a breakout from this range occurs.
