Ripple (XRP): Will the Crucial $0.51 Support Stand Firm?

• Ripple XRP's Battle With the $0.51 Support Level
• XRP Facing Intense Selling Pressure
• Ripple XRP's Potential Breakout
• Assessment of XRP's Market Position
• JD's Analysis on XRP's Weekly Chart

Ripple XRP's Battle With the $0.51 Support Level

Ripple XRP$0.620 -1.68% has succumbed to the critical price support level of $0.51, following a widespread downturn in the crypto market. This primary level could set the short-term direction of the altcoin. A descent beneath the $0.51 support could push XRP below the psychological $0.50 mark, with the next bottom at the Fibonacci 0.618 retracement level around $0.496.

XRP Facing Intense Selling Pressure

On January 18th, as bears took command, pushing Bitcoin$42,260 -0.64% below $40,000 and Ethereum$2,315 -2.42% below $2,200, XRP was not spared from intense selling pressure. This force drove XRP below $0.51 for the first time since January 3rd. Upon breaking the $0.51 level, XRP dropped below $0.50 to $0.4962, its lowest level since October 2022. The swift bounce-back above this price underscored the significance of the $0.51 support level. Currently, the coin's performance around this key defense is under scrutiny.

Ripple XRP's Potential Breakout

According to seasoned analyst Ali Martinez, for Ripple XRP to evade a steeper fall towards $0.34, it must sustain above $0.55. However, the coin may find a safe haven between $0.48 and $0.46. Should the selling pressure ease at this juncture, a rebound could be in the cards. Persistent downward momentum, on the other hand, could break below $0.46.

Assessment of XRP's Market Position

At present, XRP struggles to hold its ground at the critical $0.55 support level. Failure at this juncture could trigger a sell-off scenario that could drive XRP down towards $0.34.

JD's Analysis on XRP's Weekly Chart

Analyst JD has noted a symmetrical triangle pattern appearing on XRP's weekly chart since 2021. The coin is now moving towards the lower trendline of this triangle, which coincides with JD's identified purchase zone between the Fibonacci 0.618 and 0.786 levels, around $0.28 to $0.33.

JD intends to transform the dollar-cost average into an XRP position if it reaches this area. The future of XRP teeters delicately at the pivotal $0.51 support. A definitive dip could ignite a steeper decline, but the $0.35-0.45 zone could establish as a new bottom. Opinions on XRP's next moves remain split amid intense market volatility.

Edited by Jonathan Stoker