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Many hoped that the psychological support level of $0.50, which XRP has been circling, would hold. The persistent downward trend and the state of the market however imply that $0.50 may not be a strong enough barrier, increasing the possibility of additional downside. Here are three crucial levels to keep an eye on as possible support points in case XRP makes a significant decline below this level.
After a break below $0.50, the $0.48 zone, which has previously displayed some buying interest, might serve as the first line of defense. Despite being a small level, it might offer short-term support while traders and investors reevaluate their holdings. A bounce here would suggest that there is some interest in protecting XRP at lower levels, but it might not last long if there isn't any volume or momentum at $0.48.
The next important support level to keep an eye on is $0.45 if $0.48 fails. The price stability of XRP is critically dependent on this level, which has historically served as both support and resistance. A more significant decline might be avoided if XRP finds strong buying interest at this time; $0.45 however might only slow the decline rather than completely halt it if bears maintain control.
Alex DovbnyaSupport at $0.42: This level might act as a stronger support point; $0.42 has historically been a key area and might draw buyers seeking a possible relief rally or reversal. If XRP drops to this level, it could be a crucial moment for bulls to reorganize and attempt to rally. However, XRP could potentially fall even further if it were unable to maintain above $0.42. In conclusion, these levels — $0.48, $0.45 and $0.42 — are critical for investors to keep an eye on because XRP is displaying weakness at $0.50.
Watching for buying volume and momentum as XRP moves closer to these regions is crucial for determining the possibility of a reversal. In the absence of robust support, XRP may experience a protracted decline, which would push investors searching for a reliable entry point lower on the chart.
Alex Dovbnya
Dan Burgin
Vladislav Sopov