- Despite efforts to counter bearish trends in broader markets, XRP prices have remained stagnant in March, hovering around $0.58 to $0.62.
- XRP’s recent price movements have seen it enter a rising channel, experiencing fluctuations between support and resistance levels.
- While the Moving Average Convergence Divergence (MACD) indicator hints at a possible trend reversal, the overall trading conditions suggest a lack of bullish momentum.
Despite the broader markets’ efforts to combat bearish influence, XRP prices have failed to follow suit, with March trading remaining consolidated within a narrow range.
At the beginning of the month, the cryptocurrency experienced a significant bearish trend, with levels slipping from the consolidated zone around $0.62 and dropping by over 8% to reach $0.58. While traders are hopeful for a bullish rebound, they may face another round of bearish pressure in the near future.
Recently, XRP’s price entered a rising channel, where it initially rose to the support level before experiencing another bounce, causing it to fall back to the channel’s support line. As a result, the trade setup flipped and underwent an upward impulse to the resistance level, breaking the $0.5665 support zone. This led to a steep correction, followed by a repeated upward impulse to $0.7440, breaking $0.6630 and exiting the channel.
Bulls Face Crucial Test as XRP Reaches Lower Support of Descending Triangle
Currently, XRP’s price is heading towards the lower support of the descending triangle after breaking through the resistance. The key question on investors’ minds is whether the bulls will manage to hold this crucial support level.
The current trading conditions do not appear to support a bullish narrative. However, the Moving Average Convergence Divergence (MACD) indicator is displaying the possibility of a trend reversal, as the levels are close to achieving a bullish crossover. Until the levels rise within the bullish range, XRP’s price may remain consolidated within the triangle.
From a longer-term perspective, XRP’s price action is raising significant concerns, as it is currently testing one of the key support levels. In the short term, the 200-day Moving Average (MA) is acting as a crucial support level, while in the longer time frame, it has been a strong support.
After defending this support level for a few days, the bulls appear to have weakened, increasing the likelihood of a breakdown below the lower support.
If the bulls fail to defend the support at $0.522, a major correction may occur, potentially dragging the levels down below $0.5.
