Ripple’s price is currently in a cautious state, with a temporary bounce from the crucial $0.5 support zone towards the 200-day moving average. However, a rejection at this level could confirm the prevailing bearish trend.
In the daily chart, XRP encountered renewed selling pressure after failing to maintain gains near the 200-day moving average at $0.57. This level has proven to be a strong resistance, and a breakdown below the 200-day MA indicates that sellers are attempting to drive the price lower. Following the decline, Ripple found support at the significant $0.5 level, a historically important area that has consistently served as a defensive zone for buyers over the past year.
Currently, the asset is retracing towards the 200-day MA, but another rejection at this level would likely finalize the pullback and lead to further declines, potentially targeting the $0.46 mark.
The 4-hour chart reveals a descending consolidation pattern, with Ripple trading within a critical support zone defined by the 0.5 ($0.52) and 0.618 ($0.49) Fibonacci levels. This area has provided solid support over multiple months. Ripple has also formed a descending wedge pattern near the $0.49-$0.52 range, with recent buying activity pushing the price towards the wedge’s upper boundary at $0.53.
A breakout above this threshold could signal a bullish rebound, potentially reaching the $0.55 resistance. However, given the overall market sentiment and recent downward trends, a rejection at this level followed by a decline towards the $0.5 support is the more probable mid-term scenario.