XRP is currently encountering resistance around the 0.5350 level on the daily chart, but there is a chance of a potential reversal from the 0.38% Fibonacci retracement level.
The price of XRP has continued to decline and remains under pressure below $0.5350 on the daily chart. After reaching a high of $0.5569 in the previous session, the price faced resistance at this level.
XRP has lost ground near a significant trading zone that dates back to August 2023. It is crucial for the bulls to hold this zone, as failure to do so could result in the price falling towards $0.4900 in the short term.
After recovering from a low of $0.4228 on April 13, the price of XRP bounced back but has since entered a sideways trend. The daily chart shows that the price has been moving within a channel, oscillating between $0.4700 and $0.5500 without a clear directional bias for over a month.
At the current level, the XRP price is facing resistance at the 0.382% Fibonacci retracement level, which is acting as a barrier to any upside movement. If XRP breaks below the low of Monday’s candlestick at $0.5066, the bears could gain more control over the prices.
In that scenario, the downside target would be the 0.236% Fibonacci retracement level at $0.4900. This price level is likely to attract more investors to initiate short positions in the token, causing the price to move towards the $0.4500 level in the short term.
On the other hand, if the bulls manage to surpass the daily high of $0.5264, the price could jump towards the 0.50% Fibonacci retracement level at $0.5769. However, considering the formation of the red candlestick, the upside scenario seems unlikely.
The Relative Strength Index (RSI) is currently trading at 51, indicating no clear trading direction. Given the candlestick formation of the past two sessions, the bias remains bearish for XRP in the short term.
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