Ripple (XRP) experienced a significant drop of 7% as the overall cryptocurrency market turned red. This decline comes after Ripple faced strong rejection while trying to break through the important resistance level at $0.55. The current price action is choppy, making it difficult to determine the direction of Ripple in the short term. However, it seems that a consolidation phase is the most likely scenario for the mid-term.
When analyzing the daily chart, it becomes evident that Ripple encountered strong resistance at the crucial zone of $0.85. This indicates a substantial supply and selling pressure in that price range. It is important to note that after impulsive price surges, a consolidation correction stage is necessary to validate the strength of the trend and allow the market to rest. Therefore, it is likely that Ripple has entered a mid-term correction phase, leading to higher volatility and pullback periods before the next significant movement.
Looking at the 4-hour chart, we can observe that Ripple successfully broke above the upper edge of a channel. However, after reaching the $0.85 region, it experienced a decline with consecutive red candles. This suggests that a correction period is likely, with a retracement back to the upper boundary and a completion of a pullback. If this correction is successful, the market can expect the bullish rally to continue, pushing the price to higher levels.
Overall, the current market conditions and price action indicate a consolidation phase for Ripple in the mid-term. Traders and investors should closely monitor the price movements and key resistance and support levels to gauge the next significant movement. As always, it is important to conduct thorough research and analysis before making any investment decisions in the cryptocurrency market.