XRP is currently facing resistance around the 0.5350 mark on the daily chart, but there is a possibility of a potential reversal from the 0.38% Fibonacci retracement level.
XRP Price extended its decline on Wednesday and remains pressured below $0.5350 on the daily chart. The price met with resistance towards this level after witnessing the high of $0.5569 in the previous session.
XRP lost ground near the key trading zone that extends from August 2023. At this level, it is very crucial for the bulls to hold this zone, otherwise there is a higher chance of the price falling toward $0.4900 in the short term.
XRP Finds Upside Hurdle Near 0.382% Fibonacci Retracement Level
After witnessing a recovery from the low of $0.4228 reached on April 13, the price bounced back sharply only to enter into a sideways trend. On the daily chart, the price has been moving in a channel, oscillating between $0.4700 and $0.5500 with no directional bias for over a month.
At the current level, XRP price collides with the 0.382% Fibonacci retracement level, which now acts a resistance for the upside. If XRP breaks below the low of Monday’s candlestick at $0.5066, the bears could strengthen their hold on the prices.
In that case, the downside could be seen at the 0.236% Fibonacci retracement level at $0.4900. At this price level more investors would be encouraged to initiate short positions in the token, which will further see price moving toward $0.4500 level in the short term.
On the flip side, if the bulls managed to cross above the daily high of $0.5264, the price could jump toward the 0.50% Fibonacci retracement level, which stands at $0.5769. However, as with the formation of the red candlestick, the upside scenario looks distant.
The Relative Strength Index (RSI) trades at 51, with no clear trading direction. As with the candlestick formation for the past two sessions, the bias remains bearish for XRP in the short term.
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