XRP Price Analysis: Will $XRP Break $0.5 this Week?
The XRP price recently experienced a bearish breakdown on July 6th when it broke a significant support trendline, suggesting the possibility of an upcoming correction. Surprisingly, however, the price has been moving sideways for the past five days, with sellers unable to push it down further. This lack of downward movement indicates weakness in bearish momentum and suggests that buyers may regain control of the trend. Looking at the daily chart, there was a fake breakdown from the support trendline, setting the stage for a potential upswing in the XRP price. Additionally, the 200-day EMA slope provides strong support for XRP buyers. The intraday trading volume for XRP is currently $800.2 million, indicating a gain of 22.2%. With the recent upswing in price, buyers are attempting to reclaim the breached support of the ascending trendline. To confirm this bullish reversal, they need to close a daily candle above the aforementioned trendline and the $0.482 high of the July 6th breakdown candle. If successful, this would signal the previous breakdown as a bear trap and encourage short-sellers to exit their positions. Consequently, if buyers regain control, the XRP price is likely to rise again. The post-breakout rally could potentially push the price beyond the $0.5 mark and break through the long-standing resistance ceiling at $0.55-0.56, which has hindered buyers for over a year. However, there is a possibility that the XRP price may retest the $0.45 level. During the recent recovery rally in late June, XRP underperformed compared to other cryptocurrencies. If the crypto market becomes uncertain, sellers could keep the XRP price below the breached trendline. In such a scenario, the price could drop by 6.5% and hit the next significant support trendline at $0.45. In terms of technical indicators, with the anticipated breakout, buyers will regain daily EMAs (20, 50, and 100), which will provide additional support for long-buyers. The Moving Average Convergence Divergence (MACD) lines, represented by the blue and orange lines, are currently moving flat, indicating neutral sentiment among traders. Overall, the XRP price analysis suggests the potential for a breakout above $0.5 if buyers regain control. However, there is also a possibility of a retest of the $0.45 support level if sellers maintain their dominance. Traders should closely monitor the price action and key levels to make informed decisions.