XRP, if $1.24 breaks, plummets to $0.8... Critical Juncture

▲ XRP/AI-generated image

Due to the correction that followed its peak in August, XRP stands at a critical technical crossroads, facing the defense of a short-term support line and the test of structural support.

According to Cointelegraph, a cryptocurrency specialized media outlet, on September 17 (local time), XRP is showing a short-term bearish trend on the 4-hour chart and has experienced a pullback after failing to break through the $1.5 to $1.55 range recorded last August.

In technical analysis, the first area to watch is the $1.24 to $1.26 range, where the Fibonacci 61.8% retracement level and the Fibonacci 65% retracement level are located. Currently, selling pressure is concentrated, leading to a short-term battle. If this range breaks down, the $1.09 to $1.11 area, where the macro Fibonacci 78.6% retracement levels of $1.085 and $1.091 converge with a horizontal demand zone, emerges as the primary key support level. If even the $1.1 support level fails to attract buying interest and is breached, the decline could extend to $0.86 to $0.94, which corresponds to the August bottom structure and the macro Fibonacci 85.4% retracement level of $0.862.

On the other hand, a bullish scenario that could neutralize downward pressure also exists. For a rebound, XRP must first reclaim $1.34, then successively retake $1.43 and $1.53. Breaking through the $1.63 to $1.65 range, which is the macro Fibonacci 61.8% retracement level and a historical major supply zone, is considered a decisive turning point. The market diagnoses that a structural trend reversal will only be complete if this resistance level is breached, extending to $1.78, followed by a retest in a retracement phase, solidifying $1.63 to $1.65 as a support level.

The Relative Strength Index (RSI), a momentum indicator, shows a short-term value of 35.49, falling below the moving average of 49.79, confirming a slowdown in short-term momentum. On the candlestick chart, long upper wicks are consistently formed with each rebound attempt, clearly indicating selling pressure. From a Wyckoff structure perspective, this is a testing phase to see if the rally that started from the accumulation zone around $0.94 in August can settle into a full-fledged bullish structure. The defense of $1.09 is considered a key criterion for determining the long-term higher low structure.

[Article Key Summary]

-XRP is undergoing a correction, blocked by the August peak resistance, and the defense of the short-term support level between $1.24 and $1.26 is being tested.

-If the $1.1 support level fails to hold, there is a risk of a sharp drop to the deep demand zone of $0.86 to $0.94.

-For a full bullish reversal, XRP must reclaim $1.34 and then break through the $1.63 to $1.65 resistance level, turning it into support.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*