Ripple has recently faced heightened selling pressure, propelling the price below a crucial support region that includes the wedge’s lower boundary and the 100-day and 200-day moving averages.
However, a completed pullback has recently emerged, confirming the validity of the breakout.
The Daily Chart
The daily chart reveals a pronounced drop in Ripple’s price, breaching its multi-month sideways consolidation range. This occurrence initiated a substantial number of sell-stop orders, intensifying selling pressure and pushing the price below a crucial support area. This support area encompasses the 100-day and 200-day moving averages, along with the lower boundary of the wedge.
Despite this, the cryptocurrency found support at the $0.499 threshold and retraced back to the breached level, completing a pullback. This successful pullback suggests a valid breakout, hinting at the possibility of a mid-term downward trend toward the substantial $0.48 support region.
The 4-Hour Chart
A closer examination of the 4-hour chart reveals an impulsive breach below a significant support region, spanning from the critical 0.5 ($0.61) to 0.618 ($0.58) levels of the Fibonacci retracement, aligning with the lower boundary of the wedge. However, sellers encountered increased demand around the crucial $0.499 region and the multi-month ascending trendline, leading to a retracement back toward the breached support region.
Ripple seems to be contained within a tight dynamic range, defined by the resistance region marked by the critical 0.5 ($0.61) to 0.618 ($0.58) Fibonacci retracement levels and the crucial dynamic support of the ascending trendline. Consequently, a mid-term consolidation stage within this pivotal range is anticipated for Ripple until a valid breakout occurs in either direction.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
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.