Over the last four days, the price of XRP has plunged almost 16 percent, hitting an important support level of $0.596.
A reversal in this downtrend is expected, with confirmation coming following a breach of $0.647.
The bullish thesis will be shattered if the demand level of $0.568 is breached.
The XRP price has tried and failed numerous times to break through the high probability reversal zone. Ripple has been on a downward trend since the most recent rejection on July 4th. This downward trend has resulted in a retest of the crucial support level, which could lead to an upswing.
Over the last two weeks, the price of XRP has attempted to breach the high probability reversal zone four times, ranging from $0.680 to $0.727. These attempts failed, with the most recent jab piercing the 70.5 percent Fibonacci retracement level at $0.704 but failing to hold above it.
The purchasers’ incompetence resulted in a 16 percent pullback, which tagged the $0.596 support level. Ripple may dip a little lower and retest $0.581 in some situations. Both of these levels will allow purchasers to recoup and collect XRP at a reduced price, resulting in a tremendous upswing.
The 50 percent Fibonacci retracement level at $0.647 would be the first barrier to be converted into support if this happened. Following that, the remittance token must breach through the high likelihood reversal zone and conclude with a decisive 4-hour candlestick close above $0.727, indicating buyer intent.
If such a scenario occurred, FOMO would be triggered, propelling the price of XRP toward the range high of $0.78.
4-hour chart of XRP/USDT
Regardless of the positive sentiment around the remittance cryptocurrency, a break of the $0.581 resistance level would suggest bullish weakness. If the sellers cut through $0.568, however, the bullish argument will be invalidated, and a 10% sell-off to $0.509 might be catalyzed./n
