The price of XRP has recently seen a significant decline, breaking a crucial support level at $0.5724. This breach indicates a shift in market sentiment, raising concerns about a continued downtrend.
With the breach of the key support level, there is a growing selling pressure that could push the price towards the next critical support at $0.5291. This article discusses the current price action of XRP, the implications of breaking support at $0.5724, and what might unfold in the upcoming days.
Currently, XRP is trading around $0.5699, showing a 1% decrease from the previous day. The market cap has decreased by 13.15%, standing at $31 billion, while the trading volume has dropped by 1%, totaling $1.6 billion.
Shift To Negative Market Sentiment For XRP
On the 4-hour chart, XRP continues to display bearish momentum after falling below the 100-day Simple Moving Average (SMA). The breach of the $0.5724 support level and the formation of bearish candlesticks signal a negative shift in market sentiment, possibly leading to further declines towards the $0.5291 support level.
Indicators like the Moving Average Convergence Divergence (MACD) on the 4-hour chart show the signal line and MACD line trending below the zero line in the oversold zone. Additionally, the MACD histograms below the zero line suggest a potential further decline in the crypto asset’s price.
Looking at the 1-day chart, XRP has broken the $0.5724 support level and is heading towards $0.5291 and the 100-day SMA. A continued downward movement below the SMA could indicate a shift to a more bearish sentiment in the market.
Predictions And Key Levels To Monitor Going Forward
If the bearish sentiment persists, XRP could decline towards the $0.5291 support level. Further downward movement may lead to a test of the critical support at $0.4663 and potentially lower levels beyond that.
Alternatively, if XRP faces resistance at $0.5291 and fails to break lower, it could initiate an upward rally towards the $0.5724 resistance level. A breakthrough above this point could pave the way for additional gains, targeting resistance at $0.6360 and higher.
