XRP Price Approaches Key Horizontal Support Level

A recent alert from 100eyes Crypto Scanner spotlighted a critical moment for Ripple-affiliated XRP. The controversial token is approaching what technical analysts refer to as "horizontal support."

This key technical level could prove pivotal for the digital asset's short-term price movements.

Understanding horizontal support

Horizontal support is a term used in technical analysis that refers to a specific price level at which a cryptocurrency, like XRP, has shown difficulty falling below in the past. 

It is the point where buying interest is sufficiently strong to prevent the price from declining further. 

Related

Fri, 01/05/2024 - 15:26

Arbitrum Surpasses Ethereum in DEX Volume

Alex Dovbnya

The level, often visualized as a horizontal line on price charts, represents a psychological barrier for the market. In XRP's case, this support is near the $0.56 mark, a level where the cryptocurrency has previously stabilized and rebounded. 

Traders often watch these levels closely since a break below support could lead to further selling pressure, while a bounce from this level could indicate a potential recovery.

A day in the red 

Over the last 24 hours, XRP has declined by 3.9%, according to CoinGecko data. For comparison, Bitcoin (BTC), the leading cryptocurrency by market cap, has maintained relative stability with a modest 1.6% decline over the past day, while Ethereum (ETH) has slid by 2.9%.

Other altcoins have shown divergent paths, with Solana (SOL) dropping by 5.9% in the past 24 hours, yet boasting a strong 7.7% increase over the week. 

Notably, Cardano (ADA) has experienced a 7.4% decrease on the day, despite leading with an 11.6% surge over the past seven days.