Despite Losing $800M, XRP Bulls Eye a Breakout to $0.63—Can It Happen?

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Ripple’s XRP faces significant price volatility, losing around $800 million in the past 24 hours. This plunge follows the increasing volatility across the broader cryptocurrency market. Despite these challenges, Ripple remains within a descending channel pattern that has persisted since July 2024. This ongoing bearish trend has raised concerns among investors, who now wonder whether XRP will reach $1 or continue to decline.

Current Market Conditions

The launch of Grayscale’s XRP trust initially led to positive inflows for Ripple. However, the altcoin quickly faced rejection at its channel’s resistance trendline on the daily chart. This rejection points to strong bearish influence, keeping XRP trapped in the descending channel. Over the past 30 days, it has dropped 2.20%, while the year-to-date return stands at -9.08%. In the last day alone, the token lost 2.29% in value, with a trading volume of $1.004 billion.

XRP’s Technical Indicators Suggest Potential Reversal

Despite the bearish momentum, technical indicators offer some hope for a possible reversal. The 50-day exponential moving average (EMA) serves as a strong support level for XRP in the daily time frame. This suggests that bullish sentiment may be growing. Furthermore, the moving average convergence divergence (MACD) indicator continues to show a steady green histogram, with its averages trending upward. These signals point to a possible price rebound in the coming weeks.

Can XRP Rebound Toward $0.63?

If Ripple experiences a bullish reversal, it could push the price toward the channel’s upper resistance line. A successful breakout may lead XRP to target its next major resistance level of $0.63. However, if bears maintain their dominance, XRP could fall to its lower support at $0.560. If the price fails to regain momentum, it may drop further to $0.480.

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While XRP’s future remains uncertain, current technical signs suggest a potential upward movement in the near term. Investors remain hopeful that Ripple will bounce back, but much depends on whether the bullish signals hold strong.