XRP price movements have drawn attention as Ripple strives to hold its footing amid broader crypto market turbulence. The altcoin recently tested support levels following a market-wide dip, leaving traders watching closely for signs of a rebound.

Bitcoin and several major altcoins, including XRP, faced sharp declines early in the week, with BTC dropping to $25,166. This broad sell-off weighed on market sentiment, but swift recoveries hint that the downturn might be short-lived. XRP, in particular, moved back toward the $0.50 mark, a psychologically and technically significant level.

XRP’s Recovery Hinges on Key Price Levels

Immediately after XRP’s sharp drop to around $0.47, buyers stepped in, pushing the price back above $0.50. This price zone has acted as both support and resistance in recent months. Maintaining above it could pave the way for a rally toward the 20-day exponential moving average (EMA), which currently sits near $0.54.

Steady upward movement may encourage bullish momentum, potentially targeting the $0.56 level. However, repeated rejections at moving average thresholds have created an overhead barrier, and slipping below $0.50 would once again expose XRP to downside risk.

Ripple Faces Bearish Resistance

The trading volume and recent candlestick formations point to indecision. This tug-of-war between bulls and bears keeps XRP caught in a squeeze. A decisive breakout in either direction—especially through resistance at the 50-day simple moving average (SMA) located around $0.56—will be critical for establishing the next trend.

If sellers regain control and push prices below the $0.47 support, XRP could retest the next lower barrier around $0.45. That level served as support during previous downtrends, and a break below could confirm a bearish continuation.

Market Sentiment and Broader Trends

Much of XRP’s performance remains tightly correlated with Bitcoin and overall investor confidence in crypto markets. Bitcoin’s attempt to climb back above $26,000 is closely watched since its success or failure may shape momentum for altcoins like XRP, Ethereum, and others.

Externally, the U.S. dollar index (DXY) has shown strength, gaining ground against risk assets, while the S&P 500 Index struggles to reclaim short-term bullish territory. These macro headwinds impact speculative asset classes, with XRP no exception.

Final Thoughts on XRP’s Price Direction

XRP’s prospects remain mixed. A continued hold above $0.50 could spark renewed optimism among bulls aiming for $0.54 and beyond. Yet, failure to maintain support could open the door to deeper declines.

Traders should monitor volume trends, Bitcoin’s movements, and overall market sentiment. XRP’s next major move is likely to follow the larger market’s lead as both technical and external economic factors continue to shape crypto prices.

Related: XRP Price: $12M Max Pain for Bears

Recent XRP price movement following Bitcoin’s sharp decline