Ripple (XRP) recently faced a significant setback, as the price encountered a rejection at the critical 100-day moving average (MA) of $2.5. This rejection caused a sharp decline, with XRP losing a substantial amount of its value in a short period. However, as the price approaches crucial support zones, many investors and traders are now questioning whether the worst is over for XRP and if the cryptocurrency is poised for stabilization and a possible recovery.

XRP Price Analysis: Daily Chart Insights

On the daily chart, XRP’s price trajectory has been influenced by key technical levels, most notably the 100-day moving average at $2.5. After XRP failed to break through this resistance, the price experienced a significant pullback. This led to a decline in price, with XRP dipping towards important support levels that could help determine the next phase for the asset.

The first critical support zone is the 0.5 Fibonacci retracement level at $1.9, a key technical indicator that many traders use to predict price reversals. This level has often acted as a support area in the past, providing a solid foundation for price stabilization. Another significant support level is the 200-day moving average at $1.7, which is widely considered a long-term trend indicator. Historically, the 200-day MA has proven to be a strong support or resistance area, making it an essential level for traders to monitor closely.

Additionally, the expanding wedge’s lower boundary adds another layer of support for XRP. This technical formation suggests that the price may find support as it nears the lower boundary of the wedge. Given this confluence of support levels, the likelihood of further downward movement is reduced, with the price potentially finding stability in the $1.7-$1.9 range.

XRP Price Action: 4-Hour Chart Perspective

Looking at the shorter timeframes, such as the 4-hour chart, the picture becomes more nuanced. XRP had recently shown some upward momentum; however, it faced strong resistance as the price approached higher levels. The 100-day moving average at $2.5, which had previously acted as resistance, continued to pose a significant challenge. As a result, the price correction intensified, with XRP moving toward the descending wedge’s lower boundary at around $1.9.

The 4-hour chart indicates that XRP has been battling a lack of buying pressure, which has hindered its ability to sustain upward movement. The price dropped quickly, reinforcing the weak bullish momentum that has dominated the market in recent days. As a result, XRP’s price now sits close to the key support level at $1.9. This level has acted as a crucial support zone in the past and could be a turning point for the price if it manages to hold above it.

If XRP fails to maintain its position above the $1.9 support zone, further declines toward the $1.7 mark might be expected. However, the broader market conditions, as well as the confluence of support levels, suggest that the price may stabilize around this range before making its next major move.

The Road Ahead for XRP

In the short term, XRP appears to be entering a consolidation phase. Given the strong support at the $1.9 level and the 200-day moving average at $1.7, the price may hover within this range for a while. Traders and investors are likely to closely watch these levels, as a break below $1.7 could signal further weakness. On the other hand, if the price can hold above $1.9, a potential upward reversal may take place in the coming weeks, depending on broader market sentiment.

For the time being, the worst may be over for XRP, with support levels suggesting a potential for price stabilization and consolidation. Investors should remain cautious, monitoring for signs of either continued bearish pressure or a shift toward recovery as XRP navigates these critical support zones.