Will XRP Price Lose $0.6 Support Amid Market Correction?

Amid the recent correction trend in the crypto market, the XRP price rally witnessed an immediate reversal from the $0.745 mark. Within 5 days, the Altcoin values tumbled 16.5% to reach the current trading price of $0.62. Will the demand pressure at a 50% retracement level, offer buyers an opportunity to counter-attack or further correction is underway?

Also Read: Ripple Role Questioned as USDC XRP Ledger (XRPL) Integration Lags

XRP Price Facing the Fallout Below the 50% Retracement Level

XRP, the digital currency of the Ripple network, is riding a short-term rally under the influence of an ascending support trendline. This dynamic support has uplifted the altcoin value from a February low of $0.49 to a recent high of $0.74, registering a 51.8% growth.

The chart projecting several reversals from this support indicates the buyers continue to accumulate this asset in market dips. As of now, the crypto market is experiencing a similar situation with the Bitcoin price correction below the $70000 mark.

Thus, the XRP price of $0.612 showcased an intraday loss of 3.44%. This downtick teases a bearish breakdown from the 50% retracement level which wavers around $0.615. 

A potential breakdown below this support may hint at the weakening of this bullish momentum, while a break below the support trendline will accelerate the selling pressure on this asset.

Should this happen, the XRP price may plunge another 10% to test support region near $0.52.

Also Read: XRP Whales Move 67 Mln Coins Amid SEC vs Ripple Lawsuit Relief

Key Support Levels to Watch

An analysis of the daily chart shows the XRP price has respected two key support trendlines, a steady one marked in blue and the less inclined black. The price sustainability above the former would indicate the near trend is aggressively bullish. On the other hand, the lower one is active for over 400 days projecting the long-term rally in this asset.

• BB Indicator Band: The price below the midline of the Bollinger Band indicator reflects the sellers are strengthening their grip over this altcoin.
• Moving Average Convergence Divergence: A bearish crossover between the MACD(blue) and signal(orange) signals an active correction phase.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.