Looking at the formation of the daily chart, XRP is declining at the time of writing this article. There are hopes that the seventh most valuable coin will overcome the current wave of resistance, but sellers do not appear to be making any concessions. From the daily chart, the immediate support is $0.50, but if the sellers continue to push like they are doing now, it could break out. Upward resistance lies at $0.55. Ideally, there would have to be a massive spike above $0.66 for the uptrend to resume, mirroring the impressive July-September rally. But there are few fundamental factors driving growth in the short to medium term, calling into question the strength of the bulls.
Even if the XRP price hits new lows, the coin remains locked in horizontal consolidation. At the time of writing, it is down 2% and has been down as well over the past week. On the other hand, average trading volume declined, dropping to $1 billion.
XRP and Ripple traders are tracking the following news developments:
Despite a series of disappointing lows, over 85% of all XRP traders are bullish. If there is a contrarian move, the price could fall sharply. At the time of writing, a rejection from the upper limit of resistance could spell doom for the holder. One analyst expects a strong pullback, with the coin heading towards sub-$0.40 territory.
XRP price analysis
XRP/USD is falling in spot rates and is stuck in a horizontal channel.
As things stand, the path of least resistance based on the top-down preview is heading north.
However, for this to be verified, the bulls need to break out above $0.66.
In the short term, sellers have the upper hand.
How the price develops will depend on the reaction at $0.50 or $0.55.
A loss below $0.50 would confirm the decline in early October and likely cause the coin to fall below $0.45.
On the other hand, a surge above $0.55 will encourage optimistic traders aiming for $0.66.
