Following its solo rally, XRP has witnessed a downtrend with the rest of the markets, as it currently faces its last line of defense against a drop to $0.40.
The occasional market-wide declines have erased some of the gains picked up by XRP during its solo March rally. The asset has dropped by over 20% since the local top of $0.5850 observed on March 29. Following these intermittent declines, XRP is currently at its line of defense against a dip to the $0.40 territory.
The ongoing correction battered XRP to a low of $0.4329 yesterday before the bulls engineered a comeback above the price point. The delayed ruling on the Ripple vs. SEC case has compounded investors’ angst, leaving XRP at the mercy of the broader market.
Consequently, the market-wide decline triggered its recent retracement, with a descending trendline championing the XRP current correction. Despite a modest comeback, XRP has failed to solidify its position above $0.46, confirming that another drop below $0.45 could be in the works.
Amid an elongated consolidation observed between March 29 and April 18, XRP formed a symmetrical triangle on the daily chart, indicating that a breakout to either the upside or downside is possible. The asset broke to the downside and has remained a downtrend since then.
XRP must stay above the $0.45 price level to maintain a firm defense against a drop to $0.40. XRP last line of defense above $0.40 is the $0.43 price level, which, if broken, could spark a dip to the $0.40 territory.
Egrag Crypto, a notable analyst, previously opined that XRP could soon retest the $0.40 level. Should the bears extend the downtrend, XRP’s next support sits at the mid-March low of $0.36.
#XRP Time To Pulverize 'Final Wake UP Line' (FWUL):
When the @LuxAlgo signals a 'Buy' signal & not a Strong Green 'Buy' signal then the possibilities of cooling off might be there. Retesting the Fib 0.382
(0.40c) is still in the cards.
However, the Weekly Stoch-RSI… pic.twitter.com/Re7sdbbYlS
— EGRAG CRYPTO (@egragcrypto) April 19, 2023
XRP is changing hands for $0.4590, down 3.65% in the past 24 hours. The asset’s reclamation of the previous highs above $0.50 hinges on its ability to maintain solid support against a drop below $0.45. XRP’s only key resistance below $0.50 currently sits at $0.48. If the asset can conquer this point, a surge to $0.50 could follow suit.
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