The ongoing correction phase in XRP price from suitable support at the $0.6 level. Amid the three weeks downfall, the altcoin registered a 36.5% loss as the price dropped from the July 13th high of $$0.938 to the $0.596 low. The aforementioned support aligned with the 50% Fibonacci retracement level creates a strong footing for buyers to replenish bullish momentum. Should you enter this dip?

XRP News: Gemini Relists XRP Token, Opens Support For XRP Ledger (XRPL)

XRP Chart: Key Points

• The XRP buyers can witness strong demand pressure from $0.6 support
• A bullish breakout from the overhead resistance of $0.665 could bolster buyers for 10.8
• The intraday trading volume in the XRP is $504 Billion, indicating a 22.12% loss.

Source: Tradingview

On August 7th, the XRP price bounced back from the $0.6 support as an attempt from buyers to reclaim higher ground. However, after a short jump of 11.4%, the coin price faced immediate resistance at $0.665. 

The rejection candle at this barrier indicates the traders still follow the sentiment of selling on bounces, observed in an established downtrend. The bearish reversal undermined the 6.55% gain of the prior upswing as the XRP price currently trades at $0.627.

The declined price is expected to rechallenge the $0.6 support combined with 50% FIB. In theory, a correction to 0.5% FIB is healthy for a long-term trend whereas a downfall below starts to reflect weakness in bullish momentum.

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Thus, a breakdown below $0.6 could threaten the XRP holders for a major correction.

XRP Buyers Need to Watch Support Level

If the falling XRP price witnesses another surge of buying pressure to $0.6, it would indicate the buyers are accumulating a discounted price. This demand pressure could trigger a sideways action for a few trading days, offering buyers an opportunity to regain strength. Thus a potential breakout from the $0.665 barrier would give the first signal for recovery.

• Exponential Moving Average: The altcoin price trading above 100-and-200-day EMA indicates the overall trend remains bullish.
• Relative Strength Index: The RSI slope of 40% reflects the buyers having enough momentum to carry a bullish reversal.