XRP has been having a bad time with repeated failure to breach a significant resistance level. The cryptocurrency has been rejected six times in a row over the past several attempts, with each rejection at the $0.56 price zone.
Ripple has faced a major hurdle at this level which failed to push off any sustained bullish momentum, instead working to negate the asset’s potential to surge in the near future.
While Ripple has tried more than once to go above $0.56 resistance but still could not, and they are only becoming more and more uncertain to the market.
XRP Faces Short-Term Downside
The recent retracement without a clear bullish reversal probably means that the cryptocurrency could come under further short term downside pressure. And if XRP trends continue down they may find some relief closer to several key support levels.
Since the price is dipping below 0.5350, the first solid support zone stands at $0.51 and might serve as a cushion against them. If the level at $0.50 fails to hold however, then we should expect XRP to retest the next critical support point at $0.50, a psychologically important barrier for traders and investors alike.
A drop to around $0.48, which would be a deeper retracement, and one that could last for some time longer, could come if selling pressure increases. The descending volume pattern also suggests that bullish traders might not take the game to the next level pushing XRP higher and instead could leave a market in limbo.
Given that the downtrend is likely to continue unless a major change in market sentiment, buying pressure occurs that could keep it further on its downward.
The cryptocurrency will suffer from key resistance level hurdles with essential support zones to retain further losses. Lacking clarity, XRP is still on both bulls and bears’ radar to see how they drop to these critical price points in the days to come.
