In recent trading activity, XRP experienced a significant pullback, falling to the important support level of $0.5724. This pullback is seen as a corrective move to the recent rally of the crypto asset, which has caught the attention of traders and investors alike, and speculations have been raised as to whether the bulls will be able to hold the $0.5724 support level.
In this article, we take a deeper look at the significance of the $0.5724 support level with the help of technical indicators and the future scenarios that could occur if the coin reaches that level.
The price of XRP was trading around $0.5816, and at the time of writing, the market cap was over $32.5 billion, with a trading volume of over $3.8 billion. In the last 24 hours, the market cap of XRP decreased by 3.70%, while the trading volume increased by 17.22%.
Market Overview: Understanding XRP’s Recent Price Movements
On the 4-hour chart, XRP is still trading above the 100-day simple moving average (SMA) but is currently on a downtrend towards the $0.5724 support level. It is important to note that XRP broke above $0.5724, which previously served as a resistance level, and is now retracing for a retest.
The 4-hour Composite Trend Oscillator confirms XRP’s recent price bounce, with the signal line crossing the indicator’s SMA below, and both indicators are currently attempting to break out of overbought territory.
On the 1-day chart, XRP is trending down towards the $0.5724 support level and the 100-day SMA. Despite this downtrend, the overall trend is still bullish, suggesting that this could be a short-term bounce.
Finally, we can see that the signal line crossed above the indicator’s SMA and broke out of the overbought zone, with both lines attempting to reach the zero line. The formation of this composite trend oscillator suggests that despite the current downtrend in XRP price, the long-term outlook is still bullish.
Importance of the $0.5724 Support Level
The $0.5725 support level holds significant significance in the future potential price movement of XRP. Therefore, if XRP price falls to the support level and is rejected, it is likely to start an uptrend towards the $0.6697 resistance level. A successful break above this target could act as a catalyst, potentially triggering further upside moves to test the $0.7342 resistance level and beyond.
Nonetheless, if the price of XRP approaches the $0.5725 support level and breaks below it, it is likely to continue its decline towards the $0.4663 support level. A further break below the $0.4663 support range could lead the price to fall to lower levels, including the $0.4088 support level.
Source: NewsBTC.com