XRP Price Indicates Prolonged Downtrend as Bears Gain Control
XRP has entered a bearish zone, trading below $0.520 as bears continue to dominate the market. The price is likely to test the $0.4140 support level in the near future.
In our previous analysis, we noted that XRP broke an important contracting triangle with support at $0.510, signaling a bearish trend. The price also fell below the 50-day simple moving average (blue), resulting in a sharp decline below $0.50 and eventually reaching $0.4520.
Although there was a brief recovery attempt similar to Bitcoin, with the price surpassing the $0.4850 resistance level, it faced strong resistance near the $0.520 zone. The 50-day simple moving average (blue) and the 61.8% Fib retracement level further hindered any upward movement. Additionally, a crucial bearish trend line with resistance at $0.5050 has formed on the daily chart.
Currently, the price is consolidating below the $0.50 zone, with immediate support at $0.4780 and major support at $0.4620. If the price falls below the $0.4520 level, it could slide further and test the $0.4280 support. A break below this support level might lead to more losses, potentially reaching $0.4140 or even $0.40.
On the other hand, if XRP manages to break above $0.50, it may attempt a fresh increase. The first major resistance is at $0.5050, followed by the main resistance at $0.520 and the 50-day simple moving average (blue). A daily close above $0.520 could trigger a surge, pushing the price towards the $0.5680 resistance level. In this scenario, there is a high chance of the price reaching the $0.60 resistance zone.
In terms of fundamentals, Ripple recently conducted a study involving over 350 financial leaders, focusing on the challenges in payment reconciliation. The research highlighted key pain points such as data accuracy and completeness, reporting experience, and support access. Ripple plans to utilize this feedback to enhance the user experience of their Ripple Payments solution.
In summary, XRP is currently trading in a bearish zone below $0.520. Unless there is a daily close above $0.5050 and $0.520, the price is likely to experience further downward movement, potentially reaching $0.4140 in the coming days.