Ripple’s Price Analysis: Potential Downside if $0.5 Support Is Lost
Ripple’s price has shown a temporary rebound from the critical $0.5 support zone, moving towards the 200-day moving average. However, the market remains cautious as a rejection at this level could strengthen the current bearish trend.
**XRP Analysis**
*The Daily Chart*
XRP encountered selling pressure after failing to maintain gains near the 200-day moving average at $0.57, which acted as strong resistance. A breakdown below this moving average suggests sellers are pushing the price lower. Ripple found support at the $0.5 level, a historically significant area that has consistently served as a defensive zone for buyers over the past year. If another rejection at the 200-day moving average occurs, it could lead to further declines, potentially targeting the $0.46 mark.
*The 4-Hour Chart*
The 4-hour chart reveals a descending consolidation pattern, with Ripple trading within a crucial support zone defined by the 0.5 ($0.52) and 0.618 ($0.49) Fibonacci levels, an area that has provided solid support for multiple months. Ripple has formed a descending wedge pattern near the $0.49-$0.52 range, with buying activity pushing the price toward the wedge’s upper boundary at $0.53. A breakout above this threshold could signal a bullish rebound towards the $0.55 resistance. However, given the overall market sentiment and recent downward trends, a rejection at this level followed by a decline toward the $0.5 support seems more likely in the mid-term scenario.