Ripple Price Analysis: Will XRP Maintain $0.5 After 3.5% Weekly Drop?

Ripple's price is currently experiencing low volatility, remaining trapped between the support level of $0.5 and resistance near the 200-day moving average at $0.54. This range-bound movement suggests a state of indecision in the market, with a potential breakout likely to determine the next trend for XRP.

The Daily Chart

On the daily chart, XRP faced rejection at the 200-day moving average of $0.55, leading to a decline towards the $0.5 support level. Trading activity has slowed, with the price consolidating and showing minimal volatility near this support region. The cryptocurrency is currently caught in a critical range between $0.5 (support) and $0.54 (200-day MA resistance), indicating that the market is awaiting a stronger catalyst to drive the next move. Continued consolidation within this range is expected, and a breakout could signal the direction of XRP’s mid-term trend.

The 4-Hour Chart

The 4-hour chart reveals Ripple's indecision, with the asset confined to a crucial zone between the $0.52 (0.5 Fibonacci retracement level) and $0.49 (0.618 Fibonacci retracement level). This narrow price action, combined with a descending wedge pattern near the $0.5 mark, suggests the potential for a bullish reversal if Ripple can break above the wedge’s upper boundary at $0.54.

Descending wedges often indicate a bullish reversal when broken to the upside. However, without sufficient buying pressure, Ripple may remain within the wedge for the short term, continuing its sideways consolidation and reflecting the current standoff between buyers and sellers. A breakout from the wedge pattern, particularly to the upside, could attract renewed buying interest, while a downside break below $0.5 would likely confirm a bearish trend.