The cryptocurrency XRP, after a period of bearish pressure, has retested its crucial $0.47 support level within a multi-month downward trend, marking a significant drop from its annual high of $0.9380. This development comes in the wake of a broader collapse in the cryptocurrency market.
Earlier this year, XRP was consolidating around the $0.62 zone before succumbing to bearish pressure, plummeting to a low of $0.4309 on August 15. The cryptocurrency subsequently rallied back into the $0.50 range and formed a descending trendline. On September 29, XRP broke this trendline with a surge to a high of $0.5491, holding this position for two weeks, as bolstered by a rapid surge on Monday, October 2.
However, amid recent turbulence in the broader crypto market, XRP lost key support levels and retested the downward trendline at $0.47. Despite these market conditions, Crypto analyst EGRAG considers XRP's current trading range significant as it has maintained its 2020 support level. This hints that the longer XRP remains within preset targets, the closer it approaches towards a potential rally.
To keep recovery hopes alive, XRP needs to stay above the $0.4782 threshold. Should it fall below this level, its next significant support stands at $0.4590 to prevent drops to the August 17 low of $0.4309.
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