Ripple is currently undergoing a significant correction phase after encountering resistance at the $0.8 mark, resulting in a substantial rejection. However, there is hope for a potential halt in the downtrend in the short term as the price approaches a strong support region.
The Daily Chart
Analyzing the daily chart, we observe that the prevailing selling pressure and considerable supply around the $0.8 price range have halted the previous bullish surge, resulting in a massive rejection.
This rejection could either evolve into a bearish trend with further price declines or act as a correction phase, leading to a pullback to the broken $0.55 price region.
Despite the challenges, Ripple is currently consolidating near a significant support area, which includes the $0.55 crucial level and the 100-day substantial moving average. This support region can potentially prevent further downtrends and might initiate an upward rally toward the $0.8 price range.
The 4-Hour Chart
Moving to the 4-hour chart, we see that the price was unable to surpass the critical $0.8 resistance level, leading to a decline after an impulsive breakout from the upper trendline of the channel and surging toward this level. Although the price retraced back to the upper trendline, it failed to complete a pullback and instead fell below this crucial level.
This situation indicates the prevalence of bearish sentiment in the market, putting downward pressure on the price.
However, there is a crucial support region around the static level of $0.55, which could play a pivotal role. If the $0.55 level manages to support the price, traders can hope for another bullish rally in the coming days.
On the other hand, if sellers succeed in pushing the price below this critical level, it could trigger a cascade of selling and lead to increased market volatility.
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Cryptocurrency charts by TradingView.