Last month, the price of XRP experienced a bearish rejection at the Golden Ratio resistance level. Following this, there’s a possibility that Ripple (XRP) might enter a phase of more pronounced correction.
Initially, XRP corrected down to the 0.382 Fibonacci (Fib) support level and exhibited a bullish bounce from this point. However, current market indicators and the recent bearish rejection suggest that Ripple could now be poised for a stronger downward trend. This potential shift indicates a change in market sentiment or momentum, leading to a deeper price correction for Ripple.
Monthly Chart of Ripple: MACD Continues to Display Bullish Trend
Last month, XRP faced a bearish rejection at the Golden Ratio level, around $0.75, leading to a correction. The price then found support at the 0.382 Fibonacci (Fib) level, approximately at $0.573, where it initially bounced. However, if this support level is breached, significant support for Ripple is next expected at the 50-month Exponential Moving Average (EMA), around $0.516.
If the price falls further, the next notable Fib support level is around $0.46. As long as Ripple maintains its position above this level, the medium-term upward trend remains bullish.
On the monthly chart, the Moving Average Convergence Divergence (MACD) histogram indicates an uptrend. Additionally, the MACD lines are in a bullish crossover, while the Relative Strength Index (RSI) is neutral. These indicators suggest a mix of potential outcomes, with a bullish medium-term outlook tempered by the possibility of short-term corrections.
Weekly Chart: MACD Histogram Shows Bearish Downtick
In the weekly chart for XRP, the Moving Average Convergence Divergence (MACD) histogram is trending downwards this week. This indicates a bearish shift. Despite this, the MACD lines remain in a bullish crossover, and the Relative Strength Index (RSI) is positioned in neutral territory.
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The Exponential Moving Averages (EMAs) are displaying a golden crossover, reinforcing the bullish trend in the medium term. However, despite these bullish indicators, Ripple’s price is initiating a corrective movement this week.
Should the .382 Fibonacci (Fib) support level, located around $0.573, fail to hold, Ripple could undergo a correction toward the golden ratio level, which is approximately $0.46. This scenario suggests a potential for further downward movement in the short term within the context of a generally bullish medium-term outlook.
Daily Chart Update: Mixed Indicators Emerge in Recent Analysis
The presence of a golden crossover in the chart continues to confirm a bullish trend for XRP in the short to medium term. However, this bullish indication is contrasted by bearish signals from the Moving Average Convergence Divergence (MACD), where the MACD lines have undergone a bearish crossover and the MACD histogram is trending downwards.
The Relative Strength Index (RSI) is currently neutral, providing neither bullish nor bearish signals. Despite the bullish trend suggested by the golden crossover, the formation of a lower high in the Ripple price chart indicates a likelihood of continued downward movement.
This mix of indicators suggests a complex market scenario where bullish medium-term trends are juxtaposed with short-term bearish signals.
Potential Death Cross Looming in the 4H Chart Analysis
In the 4-hour (4H) chart for XRP, the Moving Average Convergence Divergence (MACD) lines have completed a bearish crossover. While the Exponential Moving Averages (EMAs) are also approaching a potential bearish crossover, possibly leading to a ‘death cross’. If this occurs, it would signal a bearish trend in the short term.
Contrasting these bearish indicators, the MACD histogram shows bullish momentum, ticking upwards. Meanwhile, the Relative Strength Index (RSI) is in a neutral state, not distinctly favoring either bullish or bearish trends.
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On the resistance side, the 50-4H EMA and the 200-4H EMA are significant resistance levels for Ripple. These are situated at around $0.621 and $0.632, respectively. These resistance levels could potentially hinder upward price movement.
This mix of indicators in the 4H chart indicates a complex and somewhat contradictory market scenario where bearish trends are balanced by some bullish signals.
XRP Price Holds at 0.0000155 BTC Golden Ratio Support Against BTC
In its trading pair with Bitcoin (BTC), XRP is facing the possibility of a bearish break below the golden ratio support level. This is at approximately 0.0000155 BTC. If this bearish movement materializes, the next significant support levels for Ripple are expected to be in the range of approximately 0.0000124 BTC to 0.0000134 BTC.
Supporting this potential bearish trend, the Moving Average Convergence Divergence (MACD) histogram has been showing a bearish trend for several months. Moreover, the MACD lines are currently on the verge of a bearish crossover.
On the other hand, the Relative Strength Index (RSI) is neutral, providing neither strong bullish nor bearish signals, though it is nearing oversold regions.
This combination of indicators suggests a potential for continued bearish movement in Ripple’s value relative to Bitcoin, with a cautious note on the neutral-to-oversold RSI. This might indicate a possible shift in trend or consolidation in the near future.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Bitnaz is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
