Will $0.55 Support Level Hold After XRP Rejects at $0.6?

Ripple has been trading in a tight range between $0.55 and $0.63, with the price recently facing a strong rejection near the critical resistance level at $0.64, pulling back towards the lower boundary of the range.

Despite this pullback, the asset is expected to experience a period of sideways consolidation within this range until a breakout occurs.

XRP Analysis

By Shayan

The daily chart

A detailed look at the daily chart reveals that Ripple has been confined within a crucial range, bounded by the $0.64 resistance and the $0.55 support level. Recently, it encountered increased selling pressure near the upper boundary of the range at the critical resistance level of $0.64, which resulted in a significant rejection.

Therefore, the asset has retreated towards the lower boundary of the range, which aligns with the 200-day moving average at $0.55, forming a strong support barrier. Given the current market conditions, Ripple is likely to see a sideways consolidation within this range until a decisive breakout occurs. A cascade towards the $0.50 threshold becomes very likely if a bearish breakout occurs.

The 4-hour chart

On the 4-hour chart, Ripple’s price action shows a clear rejection from the resistance zone at $0.64, a level that has historically acted as a formidable barrier due to increased selling pressure. This rejection resulted in a downtrend, taking the asset to a crucial support zone around $0.55.

Currently, Ripple is consolidating in the $0.55-$0.64 range, with the price approaching a possible breakout of the lower boundary. If this breakout occurs, a bearish continuation towards the crucial support region, marked by the 0.5 ($0.52) to 0.618 ($0.48) Fibonacci levels, is likely. Conversely, a bullish reversal targeting the upper boundary of the range at $0.64 could occur if buying pressure emerges.