Ripple’s XRP, the third-largest cryptocurrency by market capitalization, has suffered a catastrophic breakdown over the past week. The currency has slumped more than 8 percent during the seven-day trading period, hitting a low of $0.4, a key level of support that could set the stage for further losses if breached.

The bearish sentiment can be observed on both the 4-hour and daily charts. According to the 4-hour chart, XRP has taken a bearish turn after failing to hold support from the minor $0.48 level. Additionally, it has also dropped below the mid-trendline of an ascending channel. This suggests that buyers are pulling back, weakening XRP’s chances of sustaining its bull market.

Meanwhile, the daily chart paints a more bearish picture. In order to avoid a deep bearish descent, XRP needs to find support near the 200-day moving average of $0.41. If this level proves to be too weak to support the price and it falls below it, then XRP could face significant losses as fear is likely to spread and prices could tumble towards the descending trendline.

Overall, the price of Ripple is currently trading near an important $0.41 support area which consists of both the 200-day moving average and the $0.41 price level. An eventual breach below this level could spark a significant downturn. On the other hand, a strong rebound near the $0.41 support could trigger a mid-term uptrend towards the resistance area of $0.56. As always, it’s important to observe how the actual price action will unfold in order to find a clue about the short-term trend.



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