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02/09/24
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XRP Faces Bearish Pressure: Key Support Levels Under Threat
XRP has recently experienced a downturn, breaking below the crucial support level of $0.5650. This decline indicates a bearish trend, with the price at risk of slipping beneath the $0.540 level.
After failing to maintain stability above the $0.600 level, XRP has continued its downward trajectory, paralleling trends seen in Bitcoin and Ethereum. The cryptocurrency’s value dipped below essential support levels at both $0.5650 and $0.5550, entering a distinctly bearish environment. At one point, it tested a low of $0.5440, and while it has since consolidated losses, there is a potential for a recovery attempt. This recovery could test the 23.6% Fibonacci retracement level, following the drop from the recent high of $0.5721 down to $0.5440.
Currently, XRP trades under both the $0.5650 and the 100-hourly Simple Moving Average. Resistance might be encountered around the $0.5550 level, while a significant barrier aligns with a bearish trend line, also positioned at $0.5560. This trend line coincides with the 50% Fibonacci retracement of the earlier decline. For a more substantial recovery, the asset needs to surpass the $0.5650 resistance; doing so could push XRP toward the next resistance level at $0.5720.
Should there be no breakout above the $0.5650 area, the potential for further losses remains. Initial downside support is identified at $0.5440, followed by crucial backing at $0.5320. A definitive breach below $0.5320 could catalyze a decline toward the $0.5220 support, with a more substantial level at $0.5150 marking the next point of concern.
Overall, the current technical indicators suggest a prevailing bearish sentiment, as indicated by the bearish momentum in the MACD and the RSI’s position below the neutral 50 mark. The immediate focus will be on the key support and resistance levels as traders navigate the market.
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