Key Takeaways:
- XRP price is moving closer to crucial support at $0.4650.
- An important bullish trend line with support at $0.4650 on the weekly chart is in place.
- The price must stay above the 50-week simple moving average and $0.4650 to start a fresh increase.
YEREVAN (CoinChapter.com) — XRP is approaching a crucial juncture at $0.4650. If bulls defend a downside break, there could be a bullish reversal.
XRP Price Approaches Key Support
After a strong rally in July 2023 toward $1.00, XRP started a fresh decline. There was a steady drop below the $0.80 and $0.70 levels. It trimmed most gains and settled below the $0.550 pivot level.
Finally, the bulls appeared near the $0.420 support zone (a multi-touch zone on the weekly timeframe) and the 50-week simple moving average. A low was formed at $0.4201, and the price started recovering in September 2023. There was a move above the $0.50 level.
XRP even tested the 23.6% Fib retracement level of the downward move from the $0.9445 swing high to the $0.4201 low. However, a strong bearish reaction was near the $0.550 pivot level.
The price failed to start a fresh uptrend above $0.550 and started a fresh decline, like Bitcoin and Ethereum. It is back below $0.500 and approaching crucial support at $0.4650. An important bullish trend line is in place, with support at $0.4650 on the weekly chart.
The trend coincides with the 50-week simple moving average. Therefore, the bulls could take a strong stand near $0.4650. If they succeed in defending the trend line, XRP might start a fresh increase. Immediate resistance is $0.500.
The first major resistance sits at $0.545 and $0.550.
A successful weekly close above $0.550 could start a fresh uptrend. In the stated case, the price may rise toward the $0.620 level or even test the 50% Fib retracement level of the downward move from the $0.9445 swing high to the $0.4201 low at $0.6820. Any more gains might push the price toward the $0.7450 resistance.
Key Downside Break Looms?
If the XRP price fails to stay above the trend line support, there might be a strong bearish reaction. The main breakdown support is near $0.420. A downside break below the $0.420 support might start a major decline.
The price may decline toward the $0.355 level in the stated case. Any more losses below $0.355 might send the price toward $0.3025.
Overall, the XRP price is approaching crucial support at $0.465. A downside break might trigger heavy losses, and the price could test 0.35. Conversely, the price might increase fresh and attempt an upside break above $0.550.
