Is A Major XRP Rally Above $0.6 Possible?

Ripple is consolidating after a significant drop from the $0.5 support, following increased selling activity at the $0.66 resistance.

However, after breaking below the 100-day and 200-day moving averages, the price is in a phase of low volatility, suggesting a possible pullback towards these MAs.

By Shayan

The daily chart

Ripple recently experienced a significant decline, reaching the critical support region of $0.5 after facing strong selling pressure at $0.66. This led to a sharp drop below the 100- and 200-day moving averages, highlighting the solid momentum.

However, upon touching the $0.5 threshold, the decline slowed and the price entered a slight sideways consolidation, suggesting that the selling pressure had temporarily weakened.

Despite the consolidation, XRP price action reflects low market activity and minimal volatility, implying a potential pullback to previously broken MAs.

If Ripple moves back towards these levels and faces rejection, the downtrend would likely continue, with the next long-term target around the $0.43 support. On the other hand, a break above these MAs could trigger a short squeeze, leading to a major price rally as traders covering short positions drive the price higher.

Source: TradingView The 4-hour chart

The 4-hour chart further highlights the recent increase in selling pressure that pushed Ripple’s price towards a decisive support zone defined by Fibonacci retracement levels of 0.5 ($0.52) and 0.618 ( $0.49).

These levels have remained key support over the past few months, and upon reaching this region, the cryptocurrency entered a slightly bullish retracement phase, although volatility remained relatively low.

Ripple is trading within a tight range between the $0.52 support (0.5 Fibonacci level) and the $0.55 resistance. A break of this range will likely determine Ripple’s next short-term move. If Ripple fails to hold the 0.5 Fib level and breaks to the downside, the bearish decline may continue, pushing the price to lower levels.

Conversely, if the price breaks through the $0.55 resistance, it could lead to a notable rally driven by short selling as traders rush to close out their short positions.

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