Safety Net or Fragile Barrier? XRP Price takes Support at $0.5 – Crypto News – Crypto News
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Safety Net or Fragile Barrier? XRP Price takes Support at $0.5 – Crypto News

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In response to the increasing bearish momentum in the crypto market, the XRP price has witnessed aggressive correction for over a month. From the last swing top of $0.938, the coin price plummets 46.4% to reach the current trading price of the $0.504 mark. Amid this downfall, the coin price has recently breached the $0.563 support providing sellers an additional barrier to offset buyers’ attempt to recover lost ground. Should you short XRP?

Also Read: XRP Price Bloodbath Hits 20% to $0.42, Deal or Trap?

XRP Daily Chart: Key Points

  • A breakdown below the $0.56 support bolsters an 18% drop
  • A seven-month-long support trendline could provide buyers XRP buyers an opportunity to counterattack
  • The intraday trading volume in the XRP is $1.1 Billion, indicating a 64% gain.

XRP PriceXRP PriceSource: Tradingview`

On August 17th, the crypto market experienced a sharp sell-off leading to extended correction in the majority of major digital coins. As a result, the XRP coin slipped 14% and breached $0.563 and 61.8% Fibonacci retracement level.

A high momentum breakdown reflects the seller’s conviction to plunge this altcoin price to lower levels. Currently, the XRP price trades at $0.50 trying to stabilize from the recent drop. 

This struggle for sustainability below the breached support could trigger a minor consolidation below $0.56. Therefore, the coin holders can expect a sideway action in the coming days below the continuation of the downward trend.

Continuing with the bearish outlook, this breakdown could lead this fifth-largest cryptocurrency to $0.4 psychological support accounting for an 18% drop.

Will XRP Buyers Make a Comeback?

A closer look at the daily time frame chart shows the August 17th fall in XRP price witnessed demand pressure at a long-coming support trendline near $0.5. The candle pattern shows a long-tail rejection indicating a counterattack from buyers. This surge in buying pressure could bolster the above-mentioned price consolidation and validate sustainability at a lower price. A breakdown below the trendline will signal a downtrend continuation.

  • Fibonacci Retracement Level: A breakdown below 61.8% FIB level is a sign of weakness for the prevailing uptrend
  • Directional Movement Index: A negative crossover state between the DI+(blue) and DI-(orange) slope reflects a sustained bear trend for XRP coins.

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From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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