Ripple (XRP), which is among the largest altcoins by market value, has dropped to a support level of $0.6. There is no new development in the lawsuit process, and as the mass appeals approach, no significant move is expected to support the price on this front. So, what should XRP Coin investors expect after a 20% drop?
The current market uncertainty has increased selling pressure in altcoins as a result of BTC‘s unsuccessful tests at $38,000. The retraced XRP Coin price stopped at an important support level that coincides with the 50% Fibonacci retracement level and the 50-day Exponential Moving Average (EMA). Of course, we are talking about $0.6.
The support is becoming stronger with the bulls’ purchases, as indicated by the long tails in the intersecting support candlesticks. With a 1.7% increase during the day, the price recovered from this support and is currently at $0.62.
The current outlook for short-term upward movement indicates the need for closings at $0.63. Buyers can regain confidence above this level. At the time of writing, BTC price, which is testing $36,800, also supports the possibility of short-term recovery.
For the longer term, we can be a little more hopeful for XRP Coin price. With the recent recovery, a reverse head and shoulders formation, which is typically seen as an early indicator of a trend reversal, may be forming. This formation targets the resistance area at $0.93 and represents a 48% increase for XRP Coin.
The readings on the daily chart were also promising. The XRP rally continued along an ascending trendline throughout 2023. In the past 11 months, popular altcoin buyers have managed to pull back every time they hit the trendline and bounce back.
If the current correction goes below $0.6, we may see the trendline at $0.53 being tested once again for a bounce. It will be an important test for buyers, and if weakness is shown, a drop to $0.48 is also possible.
The 50-day EMA curve around $0.60 reflects additional advantage for buyers. At the time of writing, BTC appears ready to test $37,000 and above.