XRP Falls 27% From Yearly High, Here are Support Levels to Watch

XRP has plummeted 27% from the yearly high observed on July 13 amid persistent market-wide selling pressure, triggering new crucial support levels worthy of note.

Following the ruling from Judge Torres on the Ripple vs. SEC lawsuit, XRP staged an impressive rally to the $0.93 territory. However, the ensuing retracement has caused a 27% decline since July 13 and a 2% drop in the past 24 hours, triggering new support levels to note.

XRP Breaks Below $0.70

XRP closed last week on a bearish note, having dropped by 4.95% on July 22. The unfavorable condition spilled into the new week, with XRP facing a 6% drop since Sunday. This prevalent bearishness materialized shortly after the asset appreciated to a high of $0.8547 on July 19.

The bears have breached multiple support levels above the $0.70 psychological level. XRP dropped below the Fibonacci retracement level at 0.382 ($0.7576) on July 22 amid the persistent drop, leaving the Fib level 0.5 ($0.6988) as the last line of defense against a decline to the $0.6 territory.

This level was compromised yesterday as the bulls failed to mount a formidable defense. XRP now trades at a critical position, having forfeited the $0.70 territory to the bears amid increased selling pressure. Apprehensions of an SEC appeal have compounded this pressure.

Daily Chart

However, the market still shows some bullish signals, as XRP continues to trade above the 50-day EMA ($0.5897) and the 200-day EMA ($0.4933) on the daily timeframe.

In addition, following a period of close correlation, the 50-day EMA and the 200-day EMA have recently pulled further away from each other, with the 50-day EMA appreciating close to $0.60. This phenomenon signals a bullish trend in the short term.

Despite the short-term bullish signal, XRP still risks a drop to $0.65 in the absence of strong support levels above this territory. Notably, XRP’s next crucial support sits on the $0.6530 point. In addition, the next Fib retracement level is at 0.618 ($0.6400). 

A break below this level would bring the Fib retracement level at 0.65 ($0.6241) into play. XRP must hold above this point to hedge against further declines to $0.5563. Such a drop would mark a 41% drop from the $0.93 high observed on July 13.

At the time of reporting, XRP is trading for $0.6970, down 2.16% over the past 24 hours. Despite this decline, the asset has maintained a gain of 41.22% in the last 30 days.