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At the $0.55 price level, XRP encountered strong resistance, which caused a noticeable retreat. The severe rejection that followed this level, which had previously served as a critical barrier, forced XRP to move closer to the bottom edge of an ascending trendline. This price action indicates that before reorganizing for a second attempt to reclaim higher levels, XRP is probably going to face more downside pressure.
There is definitely not much momentum on the market right now. The consistent decrease in trading volume suggests that there is insufficient purchasing power to propel XRP sharply higher in the near future. Without significant outside forces influencing the market, this may make it harder for XRP to regain its footing above $0.55 anytime soon.
There are three important price levels to watch going forward: $0.53, the first line of defense and XRP is currently trading close to it. If XRP is unable to hold onto this level of support, it will probably keep falling toward the lower trendline.
If selling pressure on XRP persists, $0.50 may serve as a crucial support. If this breaks, the asset may face even more pressure in the foreseeable future. The lower limit of the ascending trendline, or $0.48, is a pivotal point for the overall market structure of XRP. While a breakdown might indicate a more significant reversal in the price trajectory of XRP, a bounce here would indicate that the bullish trend may still be intact.
Bulls on XRP will now be keeping a careful eye on these levels to see if the market can recover its strength. It is still all about the volume, and unless there is a major spike in trading activity, it is unlikely that XRP will see a major bullish move anytime soon. Prior to attempting another break above the $0.55 resistance, the price may need to consolidate.