XRP's Bullish Rally Stalls as Bears Maim Market

Amid a market downturn, Bitcoin and XRP face resistance, with Bitcoin falling below $64,000 and XRP witnessing an intraday drop of 5% to $0.6031. The bearish engulfing candle on XRP's daily chart signals sellers' dominance, leading to a potential retest of the support trendline at $0.54. The ongoing correction stems from high supply pressure at the 38.20% Fibonacci retracement level, indicating a potential extended bull run if that level is breached.

XRP's Bullish Recovery Falters Amidst Market Bearish Attack

The cryptocurrency markets witnessed a bearish reversal on Wednesday as Bitcoin failed to sustain its 10% recovery, falling back below the $64,000 mark. This bearish sentiment extended to the altcoin market, with XRP failing to maintain its 7% bullish run over the past two days and experiencing an intraday decline of 5%.

This bearish onslaught has raised concerns that the XRP rally may be coming to an end. If the sellers continue to assert dominance, could the Ripple coin drop to $0.55?

XRP Encounters a Bearish Engulfing Candle as Bulls Lose Ground

Technically, the XRP price action has been characterized by an ascending trend on the daily timeframe, marked by a series of higher highs and pullbacks. This volatility underscores the market's indecisiveness.

The bullish momentum was supported by a support trendline, which facilitated multiple higher-high formations. However, the recent rejection from the support trendline has hindered the uptrend continuation, with the supply zone at $0.64 triggering a sharp drop.

The intraday decline of 5.72% has pushed the XRP price to $0.6031, forming a bearish engulfing candle. This reversal is accompanied by an increase in trading volume, indicating that the altcoin is retesting the support trendline.

Will the XRP Price Rebound?

Amidst the overall market downturn, the XRP price has swiftly retreated under pressure from increased selling. The Fibonacci retracement levels indicate that the current correction is driven by the strong supply pressure at the 38.20% level.

A breakout of this level would signal a potential extension of the bull run, with the optimistic target set at $0.75.

Conversely, a bearish continuation could lead to a retest of the support trendline, potentially resulting in a 12% drop to the $0.54 level.

Technical Indicators

• Bollinger Band Indicator: The lower boundary of the Bollinger Band indicator is trending down, suggesting the bears are gaining momentum.
• Moving Average Convergence Divergence (MACD): A bear crossover between the MACD (blue) and the signal (orange) lines indicates an ongoing correction trend.

Conclusion

The XRP price faces a crucial test as the market sentiment remains in the hands of the bears. A breakout below the support trendline could amplify the bearish pressure, potentially pushing the Ripple coin towards $0.55. Conversely, a decisive breakout above the Fibonacci resistance at 38.20% could reignite the bull run and set the stage for a rally towards $0.75.

Investors should closely monitor market conditions, technical indicators, and news developments to make informed decisions regarding their XRP investments. The coming days will be pivotal in determining the future trajectory of the Ripple coin.