Ripple has seen a decline in recent days. In previous analysis, we discussed the scenario where XRP will continue to fall to a price of 0.58, and this is where the coin currently appears to be finding support. What can we expect now? Let’s look at the graphs.
Answer for $0.58
We’ll start this analysis with the weekly chart of XRP. Three key gray areas that have been important in the past are highlighted here. They cost approximately $0.90, $0.58 and $0.30.
As you can see, XRP fell between the two top zones, but the coin did not rise above 0.75. Therefore, the price was expected to drop briefly to find new support. In the previous analysis I pointed out that the currency had to fall a little further (in the intermediate gray area) and that has now happened.
We are now seeing the reaction of this zone, which makes it look like XRP is rising again. The temperature in the area may drop a little further, but this is not necessary. It is important that the coin does not reach deeper lows because in order to continue rising, the coin must maintain this zone.
In this case, it doesn’t really matter how far the coin sinks into the zone, as long as it doesn’t break on the ground. In this case, the coin will have to look for new support between the $0.30 and $0.58 zones.
Can XRP Rise to 0.90?
To better see this zone’s recent movement and reaction, let’s also take a look at the daily chart. Here each candle represents 24 hours, making it easier to visualize the response to the gray area.
It would be a good sign if the currency continues to rise from here on out. This could mean that few buyers can fill their pockets in the gray area, so we could see a Fomo-led surge (the fear of missing out). However, this scenario cannot be predicted far in advance.
If the currency remains strong here, the upper gray zone would be a realistic long-term target. To achieve this, the coin must remain in the gray zone of $0.58, but also surpass its previous high.
Therefore, the path to $0.90 could see some minor setbacks if it reaches $0.75 (the location of the previous high). This does not have to happen, but it is a logical reason for many investors to take profits.
All in all, the currency looks good and we can rule out negative scenarios for the time being. Pay special attention to the gray area and note the previous highlights.
Source: BtcDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
