Ripple’s native token, XRP, has been trading at a pivotal support level of $0.5, suggesting that while sellers have lost some momentum, buyers are still cautious. The cryptocurrency market’s movements around this psychological support have ignite discussions about whether XRP can shift its bearish market structure into a bullish one, potentially climbing toward $1 in the coming months.

With liquidation data and market indicators showing potential for a price bounce, XRP’s price action has piqued the interest of investors looking for a solid rally. Here’s a closer look at the technical factors currently at play and what they might mean for XRP’s near-term future.

Key Demand Zone Around $0.5 Could Fuel a Bounce

At present, XRP is navigating a significant demand zone centered around the $0.5 mark—a price level that has drawn attention from both bullish and bearish traders. XRP’s current position places it well below the mid-range level of $0.585, underscoring the high timeframe (HTF) bearish bias that has shaped its trajectory for weeks.

Analysts note that a sustained defense of the $0.5 level could encourage a price rebound of 6-12%, targeting higher short-term price levels. As sellers seem to lose steam, it remains to be seen if XRP bulls will capitalize on this momentum and steer the price upward.

Support at $0.502 Holds Strong Against Bearish Pressure

XRP’s daily chart tells a story of resilience at the $0.502 level, where bulls have consistently defended this key support over the past three weeks despite bearish pressure. However, the overall market structure, both daily and weekly, remains skewed to the downside. Indicators of a potential price floor include the inability of sellers to breach this support, hinting at exhaustion on the sell side.

That said, downside risks persist. If Bitcoin were to see a major correction, XRP could revisit its previous low of $0.44. Nevertheless, with the Chaikin Money Flow (CMF) indicator at -0.04, capital outflow has slowed compared to last month, providing some hope that bearish momentum is waning.

Liquidation Levels Signal an Imminent Bounce to $0.57

Insights from the liquidation heatmap—a tool that tracks levels of buyer and seller liquidations—suggest that XRP has amassed liquidity around the $0.5 level and may be preparing for an upward impulse move. Levels around $0.54 and $0.57 stand out as short-term targets, providing likely resistance points if XRP begins to rise from its current support.

In addition, the Relative Strength Index (RSI) has remained below the neutral 50 mark for five consecutive weeks, underscoring the dominance of bearish momentum. But the recent defense of the $0.502 level hints that XRP may be due for a corrective move. While $0.54 and $0.57 are realistic initial targets for such a bounce, a move toward the highly anticipated $1 mark may require sustained buying momentum and broader market support.

How Market Sentiment and External Factors Could Shape XRP’s Path

As with most digital assets, XRP’s price movement doesn’t exist in isolation. Many traders are factoring in macroeconomic events, such as U.S. economic indicators and global regulatory developments, which could influence overall market sentiment. Some investors are also watching to see if the upcoming U.S. election results will inject confidence into the market, potentially boosting buyer interest in XRP.

A crucial factor to watch will be how XRP fares in the coming weeks, especially if it manages to establish a foothold around $0.54 or $0.57. With sellers unable to break the $0.502 support, the chances for a short-term rebound have increased, though a robust rally toward $1 may depend on positive sentiment in the broader crypto market.

XRP’s Outlook: Can Bulls Propel It Toward $1?

While the current price action suggests potential for a bounce, reaching $1 would require a sustained push from XRP bulls to counter the prevailing bearish market structure. For this to happen, XRP must break above the immediate resistance levels at $0.54 and $0.57 and hold above them. Such a move would signal growing confidence among buyers and could pave the way for a longer-term trend reversal.

Investors should be cautious, as a steep Bitcoin drop could still put downward pressure on XRP. However, should BTC hold steady or even climb, it would lend additional support to XRP’s attempt at a rally.

Conclusion:

XRP’s resilience at the $0.5 support level has given bulls a reason to hope for a potential rally. Liquidation data points toward an imminent price bounce, with $0.54 and $0.57 as immediate targets. While reaching $1 may be an ambitious goal in the short term, a breakout beyond $0.57 could provide the momentum needed to shift sentiment and set XRP on a more bullish course.

Ultimately, the next few weeks will reveal whether XRP bulls can translate this support into a rally or if bearish forces will maintain their hold. Investors should watch these levels closely to gauge the strength of XRP’s recovery and potential upside.