2023-07-17 23:34:53
© Reuters XRP needs to hold this level to avoid 18% correction
CriptoFácil – The price of has experienced a significant increase recently, rising more than 70% in a single day, but found resistance at US$ 0.91. As a result, the price of the cryptocurrency has started a correction phase, something to be expected in the case of XRP. After all, the price rose very quickly, which is not sustainable in the short term.
Corrections play an important role in financial markets as they help to establish more sustainable price levels. But in some cases, they can start a low phase.
In this case, the bearish retracement sent prices down by 26%, hitting the 32.8% Fibonacci retracement level at $0.65. It should be noted that XRP is worth $0.73 according to CoinGecko, but the $0.65 region is precisely the support of this range. See what might happen to XRP in the medium term.
trends and movements
In recent days, the price of XRP has shown some stability at this local level. However, the question remains whether this is enough for a resumption of the previous recovery. Since most of the positive movement has occurred, only one new event should make this happen.
On July 16, the price displayed a so-called “morning star” candlestick pattern at the newly established support level of $0.65. Such a candlestick pattern formation indicates a potential reversal of the prevailing downtrend and a move into an uptrend.
However, when analyzing the daily chart, it is evident that there was strong selling pressure manifested in the form of a rejection wick on the green candle of the daily chart. Furthermore, XRP opened down 0.9% this Monday (17th), suggesting a lack of follow-up on the reversal candle – which indicates even more weakness in the bullish move.
Therefore, it is possible that the XRP price will undergo a prolonged correction if it dips below the $0.65 support level. In this scenario, the potential breakout could see the price drop another 7.5%, reaching the 50% retracement level at $0.62.
Will the price of XRP continue the correction trend?
A prolonged correction would drop the price of XRP to a 50% Fibonacci retracement level of $0.62. This level represents a key potential support point and price reversal area.
Therefore, if the XRP price manages to sustain this level, the overall trend will remain bullish. On the other hand, if the price breaks the $0.62 support, it would indicate fading bullish momentum and potentially open the door for further corrections.
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