Right now, XRP is aggressively consolidating at the 50 EMA support level, and there is definitely a chance for another breakdown. Sadly, given its current status, a decline below that point would result in some major problems and drive the asset’s price down below $0.5 or possibly much lower. Don’t worry just yet, though, as the price will need to open up a few candles below the support level before a genuine break of it would be deemed complete.
Looking at the chart below, we can see that although XRP is trading above the 50 EMA, it has not yet overcome resistance from the upper levels of the 200 EMA (black line) and the 100 EMA (orange line). The sideways movement conveys a state of unease since the volumes are kept very low. There is no immediate overbought or oversold reading on the RSI to indicate an advantage. It is now at a neutral 51.
monitor the psychological $0.5 level as the next obvious spot to monitor if it breaks below the 50 EMA. If prices continue to drop below this mark, they may eventually breach the lower support levels, which are located around $0.48 and $0.45. The overall attitude of the market and the strain it is now under after Mt. Gox began disbursing payments to investors may drive this scenario through.
In contrast, XRP may be able to start a bullish comeback if it can continue to trade above the 50 EMA and generate sufficient purchasing pressure. The 100 EMA serves as the initial barrier. If XRP breaks above here, it may challenge the 200 EMA and go as high as $0.55. Above that, $0.6 represents a very strong resistance that has historically proven to be difficult to overcome.
