The Ripple XRP token has pulled back to a pivotal support zone around $0.50 following a breakdown from its recent symmetrical triangle pattern. While bulls are attempting to defend this area, bears remain in control in higher time frames, leaving XRP at a key technical crossroads.
As noted by analyst Hov on X, the $0.50 level marks an important support level that bulls are hoping to reclaim after XRP tagged the price earlier this week.
“Ripple XRP tagged a super important support level at 50 & put in a great bounce.” “Bulls really want that level to hold or [a more negative] outlook is in play.”
Hov sees the potential for XRP to carve out an interim bottoming pattern known as a “triangle B” if the $0.50 support is recaptured. However, failure to hold this area risks plunging XRP down toward its next significant support zone around $0.42.
Also read: Top 3 Cryptocurrencies To Watch In 2024
XRP holds steady above $0.50
Looking at the daily price chart, the technical landscape appears largely neutral at the moment. XRP did break out above the $0.54 resistance earlier this month, forming a short-term symmetrical triangle continuation pattern.
Most analysts agree that the coming days will prove decisive in determining XRP’s next significant move. A successful defense and bounce from $0.50 support opens the door for a potential 20% move back toward triangle resistance around $0.60. However, losing this area risks kicking off a steeper 25% decline toward the $0.42 support zone, which could invalidate any near-term bullishness.
Also read: Ripple (XRP) or Cardano (ADA): Which Coin Will Hit $1 in January 2024?
Of course, volatility and swift trend changes are par for the course with Ripple and the broader crypto asset complex. As the token balances precariously around the $0.50 level, nimble traders may look to tactically trade the likely outsized swings in either direction. However, investors should await stronger confirmation of XRP’s next trend before wading back into the coin.
Credit: Source link
