Ripple recently faced a pullback after reaching the significant resistance level of $0.64, causing the price to fall towards the lower boundary of its current range, aligning with the 200-day moving average at $0.55. Despite this decline, the price is likely to remain in its sideways consolidation range and experience a modest recovery.
XRP Daily Chart Analysis
A closer look at the daily chart shows that Ripple encountered strong selling pressure at the $0.64 resistance level, leading to a significant decline. The price has now pulled back towards the lower boundary of the trading range, coinciding with the critical 200-day moving average at $0.55. The observed bearish divergence between the price and the RSI indicator on the daily timeframe highlights weakening bullish momentum, indicating that sellers are attempting to push the price below this important moving average. However, due to potential demand at the $0.55 level, a slight recovery is likely, leading to continued sideways consolidation in the near term. If the $0.55 support unexpectedly breaks, a further decline towards the $0.53 level could quickly follow.
XRP 4-Hour Chart Analysis
The 4-hour chart confirms that Ripple’s price action was rejected from the $0.64 resistance region, with the price returning towards the critical $0.55 support level. Historically, this area has provided strong support and is likely to attract buying interest, potentially halting further declines. Consequently, Ripple may find short-term support here, leading to a rebound towards the upper boundary of the $0.64 range. Overall, XRP is expected to remain within the $0.55 – $0.64 range, dominated by sideways price action. However, if the $0.55 support fails, the bearish trend may continue, pushing the price down to the critical support region between $0.52 (0.5 Fibonacci level) and $0.48 (0.618 Fibonacci level).
Impact of Ripple Labs Events on XRP Price
In addition to these technical developments, events on the Ripple Labs front may continue to significantly impact the XRP price. Notably, the resolution of the legal battle with the SEC and the company’s launch of a stablecoin project are expected to positively influence the XRP price.
In the near term, Ripple is likely to remain within its sideways range despite the current pullback. Strategic developments such as legal disputes and projects by Ripple Labs will continue to play a critical role in the price evolution of XRP.
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