XRP Price Hits $0.58 Support; Accumulate Again?

On April 25th, the Ripple(XRP) sellers escaped from a minor consolidation stretching from $0.87 to the 0.68 mark. The support breakdown released the trapped bearish momentum and pulled the XRP price to January’s bottom support at $0.58.

Key points from XRP analysis: 

The XRP price lost 25..56% within a fortnight
The potential fallout from the $0.55 would invalidate the bullish theory
The intraday trading volume in the XRP is $1.8 Billion, indicating a 4.1% loss.

Source- Tradingview

Since the November 2021 bloodbath plunged the Ripple(XRP) price below the $1 physiological mark, the price action has been restricted within the $1 and $0.55 barrier. As a result, the altcoin has witnessed a range-bound rally for five months, waiting for a genuine breakout.

A recent reversal from the $0.88 resistance had slumped the XRP price to local support of $0.685. Furthermore, the buyers drove a minor relief rally that was soon revered and breached the $0.685 support.

The XRP price currently trades at the $0.6 mark, with a loss of 31.8% from the swing high resistance($0.88). The altcoin is gradually nearing the January bottom support of $0.55, which is a significant accumulation zone for traders.

If the XRP price rebounded from this support, the renewed buying momentum would push the price to 0.68 or $0.88, continuing the range-bound rally for a few more sessions.

Alternatively, the $5.5 support fallout would suggest downtrend resumption and may drop 31% lower to the $0.4 mark.

Technical Indicator

The flattish 50, 100, and 200 EMAs emphasize a sideways rally for XRP. However, the coin price moving below these EMAs and a potential bearish crossover between the 50-and-100 EMA puts sellers at a major advantage. 

The expanding gap between the MACD and signal lines suggests growing bearish momentum. 

Resistance level: $0.73 and $78
Support levels: $0.7 and $0.63