Ripple’s decline has temporarily halted at the 200-day moving average, triggering a slight rebound. However, weak market participation and low momentum suggest a high probability of continued consolidation and short-term retracements.
By Shayan
The Daily Chart
Ripple’s recent impulsive decline has been paused at a significant confluence of support levels, including the 200-day moving average at $1.8, the 0.5–0.618 Fibonacci retracement zone, and the lower boundary of a descending wedge pattern. This zone has acted as a key demand region, temporarily halting the downtrend.
Moreover, the emergence of a bullish divergence between the RSI and price action further supports the possibility of a short-term rebound, potentially targeting the wedge’s upper boundary near the 100-day MA at $2.5.
However, the broader market environment remains characterised by low activity and weak momentum, suggesting that XRP is likely to continue oscillating within the wedge pattern until a decisive breakout occurs.
A valid breakout, either above or below the wedge, could result in significant volatility and liquidation cascades, driving an impulsive move in the breakout’s direction.
The 4-Hour Chart
On the lower timeframe, XRP initially broke below both the descending wedge and expanding wedge patterns, triggering a wave of fear and suggesting a bearish continuation. However, this breakdown quickly turned into a false breakout, forming a bear trap as the price bounced back above the broken support levels.
Since then, XRP has been gradually retracing toward its prior swing high of $2.2. A successful breach and close above this level would mark a bullish market structure shift, potentially opening the path toward the $2.5 resistance zone.
Conversely, failure to break above $2.2 would reaffirm the existing bearish structure, making further downside in the medium term more probable.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
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.
