- Ripple’s XRP showed a 5% gain in May, breaking the $0.50 resistance amid a bullish market.
- However, historical data indicates a challenging June ahead, with XRP averaging a -5.59% ROI over the past decade, highlighting significant resistance at $0.54 and ongoing bearish signals below key moving averages.
As May drew to a close, Ripple’s XRP managed to capitalize on the overall bullish sentiment in the crypto market, recording a 5% price increase and surpassing the crucial $0.50 resistance level. However, historical data suggests that the road ahead may not be as smooth for XRP investors, with June traditionally being a challenging month for the remittance token.
June’s Bearish Pattern
While XRP exhibited some stability in May, history indicates that June has often been a month of struggle. Over the past decade, XRP’s performance in June has averaged a return on investment (ROI) of -5.59%. The median return is even more concerning at approximately -9%, reflecting consistent losses since 2017 according to CryptoRank data.
Despite the volatility inherent in the cryptocurrency market, these statistics suggest that XRP enthusiasts might need to brace for potential downturns. At press time, XRP was trading at $0.5155, having lost 1.80% over the past day. The token is currently holding above a vital support zone at $0.50, which could provide some cushion against further declines.
Key Support and Resistance Levels
For now, XRP’s stability above $0.50 is a positive sign, indicating strong support levels at $0.52 and $0.50. These levels are likely to keep the altcoin afloat, even as the broader market sentiment remains uncertain. The four-hour (4H) chart has revealed a green candlestick, signaling a potential opportunity for executing long positions.
However, XRP’s immediate trajectory will likely be influenced by the region between the $0.51 support and the $0.53 resistance. While the green 4H candle reflects a buyer’s edge, sustained upswings will require flipping the Exponential Moving Averages (EMAs) to support levels. Achieving this could set the stage for a golden cross setup, which is typically a bullish signal.
Nevertheless, XRP faces a formidable resistance at $0.54, a hurdle it failed to cross over the past day, resulting in the current sideways price movements. Additionally, XRP remains below the 20-, 50-, and 200-day EMAs, indicating ongoing bearishness. To invalidate this bearish outlook, XRP would need a decisive close beyond $0.56.
While XRP’s historical performance in June paints a grim picture, there are potential catalysts that could trigger a recovery. Positive developments from the SEC or the approval of Ripple ETFs could provide the necessary momentum for a bullish breakout. For now, investors should keep a close eye on the support and resistance levels, as well as any significant market news, to navigate XRP’s turbulent waters in the coming month.
While Ripple’s XRP has shown resilience in May, historical trends suggest caution as we move into June. Investors should be prepared for potential losses but remain vigilant for any positive developments that could turn the tide in favor of the remittance token.
