Is XRP Facing a Potential Drop Below $0.50 Soon?

Ripple has recently faced considerable selling pressure around the $0.65 resistance level, resulting in a notable price drop.

This decline indicates a possible transition toward bearish control as the price slips below the lower boundary of the ascending wedge pattern. XRP may further decrease toward the $0.5 mark in the following sessions.

By Shayan

The Daily Chart

In the daily chart, XRP climbed toward the upper boundary of the ascending wedge and encountered significant resistance at the $0.65 mark, leading to a strong rejection.

This resistance area, coinciding with earlier swing highs, has proven to be a significant barrier, preventing further price advances in recent months. After this rejection, Ripple found itself in the important price range of $0.5-$0.55, where short-term consolidation is anticipated.

As the price breaks below the lower trendline of the ascending wedge, a continuation of the bearish trend is likely. Should XRP attempt a retracement to revisit the broken wedge, it may experience additional selling pressure, which could push it toward lower levels, specifically the $0.5 support zone.

The 4-Hour Chart

The 4-hour chart shows a false breakout as Ripple momentarily crossed above the $0.65 threshold. This upward movement generated significant demand, but was quickly countered by intense selling pressure, resulting in a sharp reversal.

XRP’s price swiftly retreated into the flag pattern from which it had previously broken out.

Currently, the cryptocurrency is assessing a vital support area defined by the flag’s lower trendline, alongside Fibonacci retracement levels of 0.5 ($0.52) and 0.618 ($0.48). This range is expected to temporarily support the price, potentially leading to a short-term bullish corrective action and sideways movement before the next major trend is established.