On June 14th, the XRP price experienced a significant decrease, breaking through the $0.487 local support. Although this drop was expected to intensify selling pressure among traders, the price found immediate support at the long-coming support trendline, which has maintained an uptrend in the coin over the past three months. This dynamic support not only offered a dip opportunity to traders but also potentially started a new recovery cycle.
The lower price rejection candles at the support trendline demonstrate increased demand pressure for the XRP price. Moreover, a potential breakout above the $0.487 resistance could be the catalyst, initiating a recovery. The XRP price currently trades at the $0.47 mark and fluctuates in a narrow range created between the ascending trendline and the recently breached $0.487 support.
This narrow range has led to uncertainty among traders, demonstrated by several short-bodied candles in the last three days. If market sentiment does not improve shortly, the XRP price is likely to extend this consolidation for a few more days. This range can be considered a no-trading zone for newcomers as they wait for more imminent signals.
For a bullish outlook, the breakout above the $0.487 resistance, combined with a daily candle closing, will provide additional confirmation for a price reversal. Consequently, the potential recovery initiated from the bottom trend could assist buyers in rechallenging the $0.55 mark, signifying a growth opportunity of 14%.
For market buyers, the ascending trendline serves as crucial support that maintains their optimism. On the other hand, the current negative sentiment cannot completely rule out the possibility of a trendline breakdown. In a pessimistic scenario, a breakdown below the lower trendline can accelerate the selling pressure and cause the XRP price to plunge below $0.42.
Technical indicators show mixed signals. The ongoing correction in the XRP price stayed above the 50% Fibonacci Retracement level, suggesting that the overall market trend is bullish. However, the Bollinger Band indicator’s upswing slope on the lower band could offer significant support amid market uncertainty.
The future of the XRP price remains uncertain. While there are signs of a potential recovery, market sentiment must improve for a decisive movement. In the meantime, traders need to be cautious and monitor the market closely before making any critical investment decisions.
Source: Coingape
