Massive rally or a rapid decline? (Ripple Price Analysis)

Ripple continues its multi-month sideways consolidation, with the price showing minimal volatility. Anticipating its next move will remain a challenge unless a definitive break of this extended range occurs.

By Shayan

The daily chart

A close examination of the daily chart reveals that XRP has capped between key resistance at $0.55 and major support at $0.47, resulting in a prolonged sideways consolidation characterized by minimal volatility and subdued market activity .

This range-bounded movement indicates a state of equilibrium between buyers and sellers, with neither side demonstrating sufficient strength to dominate the market.

Ripple is currently experiencing extremely low volatility, suggesting a balanced state of supply and demand. For the market to witness a solid and sustained move, buyers or sellers must assert control with intensified demand or supply.

However, the price faces a major resistance zone, which includes the upper limit of the range and the 200-day moving average. If buyers manage to break through this key zone, a lasting uptrend could develop. However, given the existing supply at this level and the lack of strong upward momentum, a continuation of the short-term consolidation seems more likely.

Source: TradingView The 4-hour chart

On the 4-hour chart, Ripple is experiencing extremely low volatility and market activity, leading to muted price action. The cryptocurrency has reached a very tight range, bounded by the Fibonacci level of 0.5 ($0.5310) and the lower limit of the ascending wedge at $0.51.

However, Ripple remains at a critical juncture and is experiencing low volatility. A break of the current range is necessary to confirm the next trend direction.

Until then, Ripple will likely continue its sideways consolidation, with the potential for a bullish breakout or bearish rejection depending on market dynamics and the balance of supply and demand.

Source: TradingView SPECIAL OFFER (Sponsored) Binance Free $600 (Excludes CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.

TradingView Cryptocurrency Charts.