Anika Begay
XRP price recently experienced significant bearish momentum, which led to the break of a crucial support level at $0.5724. As the cryptocurrency breaks above the key support level, it signals a significant shift in the market feelingincreasing fears of a continued downtrend.
This breakout suggests that selling pressure is intensifying and could lead to a potential price deceleration towards the next critical support level at $05291. This article delves into the current price action of XRP, the implications of the breakout of the $0.55724 support, and what to expect in the coming days.
At the time of writing, the price of XRP was trading at around $0.5699, a 1% decline from the previous day’s price. The cryptocurrency’s market capitalization dropped by 13.15%, valued at $31 billion, while its trading volume decreased by 1% to $1.6 billion.
Market Sentiment Turns Negative for XRP
On the 4-hour chart, XRP continued to demonstrate bearish strength after breaking below the 100-day simple moving average (SMA). Multiple bearish candles formed and the price breached the $0.5724 support level. These recent price movements indicate a negative move in market sentiment, which could lead to further declines towards the support level of $0.5291.
The signal line and the Moving Average Convergence Divergence (MACD) line on the 4-hour chart have broken below the zero line and are currently trending in the oversold zone. Additionally, the MACD histograms are trending below the zero line, suggesting a potential continued downward movement for the cryptocurrency.
On the 1-day chart, XRP price successfully breached the $0.5724 support level the previous day and is moving towards the $0.5291 level and 100-day SMA. If the price continues its downward momentum and breaks below the SMA, it may indicate a shift towards more bearish market sentiment.
Finally, a closer look at the 1-day MACD indicator shows that the signal line has crossed below the MACD line and both are moving towards the zero line. Also, the MACD histograms are trending below the zero line. This setup suggests that the cryptocurrency may be ready for further losses.
Forecasts and key levels to watch in the future
Self Exchange rate risk maintains its current bearish sentiment, it could drop towards the support level of $0.5291. A breach of this level could further amplify the negative sentiment in the market, potentially pushing the price down to the next critic support level at $0.4663. If the downward pressure persists, it could lead to further declines beyond this level.
However, if the digital asset faces resistance at $0.5291 and fails to break below, it could lead to a potential upside move, reaching the resistance level of $0.5724. When the price rises above this level, further gains could occur, targeting the resistance level of $0.6360 and above.
Featured image from Adobe Stock, chart from Tradingview.com
