Ripple has been facing a prolonged period of low market activity, leading to sideways movement and minimal volatility near the $3.2 level.
However, emerging technical signals suggest that a potential correction may be on the horizon.
XRP Analysis
By Shayan
The Daily Chart
XRP has steadily climbed toward the $3.2 resistance, a crucial supply zone that has historically posed challenges for buyers. This level is a major obstacle, requiring strong bullish momentum to be reclaimed.
Meanwhile, price action has formed an ascending wedge, a pattern often associated with bearish reversals if the lower boundary is breached. Additionally, a bearish divergence between the price and the RSI indicator suggests that bullish momentum is fading, signaling the possibility of a pullback.
If XRP fails to sustain its current levels and breaks below the wedge’s lower boundary, a deeper correction toward the $2.5 support zone could materialize in the mid-term.
The 4-Hour Chart
Ripple has been consolidating around the $3.2 mark on the lower timeframe, with an initial rejection triggering long-position liquidations. This development cooled down the futures market, allowing for another push toward the resistance.
XRP is attempting to reclaim this level for the second time, with buyers aiming for a breakout toward $4. However, the current bullish momentum appears insufficient, increasing the likelihood of a temporary retracement before another attempt at higher prices.
If a pullback occurs, the 0.5-0.618 Fibonacci retracement zone will serve as a critical support area where buyers are expected to step in and defend the price in the mid-term.
Read the full article here