As we see a recent drop in the price of XRP, here are three price levels that might serve as indicators of the asset’s short-term direction.
50-EMA standoff
The 50-day EMA, a popular technical indicator used to analyse the asset’s momentum over a median term period, is XRP’s current battlefield. XRP is currently at a crossroads, making it a critical stage for either a resurgence or a further decline. The 50 EMA serves as a dynamic support level that, if violated, might trigger an accelerated sell-off.
Half-dollar psychological and technical threshold
The $0.50 level is notable not just for its psychological importance as a round number, but also for its historical use as a flip zone. This price point has previously served as a reversal region, indicating that buyers have previously entered at these levels, maybe considering it as a value area. A retest of this level may either maintain its status as a strong support or, if violated, confirm bearish market sentiment.
$0.41 line in sand
Further down, the $0.41 level is a key multi-year low that might serve as a final resort for bullish prospects. This level’s significance is highlighted by its historical precedent; any decline below it might indicate a lack of market confidence and perhaps cause a more severe surrender.
Specific resistance levels to watch for include recent local highs. If XRP manages to rebound, it must first overcome immediate resistance at the $0.55 level, which might serve as a ceiling for any higher rises. Beyond that, the $0.60 level, which was previously discussed, is expected to be the next substantial obstacle.
If XRP fails to maintain these support levels, a negative scenario may emerge. A breach below the 50 EMA may trigger a domino effect of significant liquidations, with the price potentially spiralling downward to test the $0.50 support. If this psychological and factual support loses way, bears will be able to attack the multi-year low of $0.41.
