After breaking below the multi-month ascending trendline, XRP has exhibited uncertain price action, indicating a lack of market activity and momentum. However, the cryptocurrency has reached a critical resistance level, potentially signaling another downturn in the mid-term.

Ripple Price Analysis: Technicals

By Shayan

The Daily Chart

Upon thoroughly examining the daily chart, it becomes evident that XRP faced intensified selling pressure, resulting in a significant decline below the multi-month ascending trendline.

Nevertheless, buyers intervened at the $0.45 threshold, triggering a bullish rebound towards the previously breached ascending trendline at $0.56, potentially completing a pullback.

However, the recent price action suggests uncertainty and a lack of clear direction in the market. Ripple is potentially poised for sustained consolidation within the price range bounded by the critical support region of $0.45 and the pivotal resistance at $0.59.

Consequently, XRP seems likely to remain within this price range in the middle term until a breakout occurs.

Source: TradingView

The 4-Hour Chart

A closer examination of the 4-hour chart reveals that after finding support around the $0.49 mark, the price went through a bullish retracement towards a significant resistance region outlined by the price range between the 0.5 ($0.5310) and 0.618 ($0.5574) Fibonacci levels.

However, during the recent fluctuations, XRP formed an ascending wedge pattern, a well-known indication of a potential bearish retracement if breached from its lower boundary. Currently, the price faces significant selling pressure near the 0.5 ($0.5310) and 0.618 ($0.5574) Fibonacci levels, potentially suggesting renewed bearish movement.

Nevertheless, if the cryptocurrency breaks below the wedges lower boundary, a sustained bearish movement may ensue, targeting the $0.48 threshold in the short term.

Source: TradingView SPECIAL OFFER (Sponsored) 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 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

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.