XRP price started a downside correction from the $0.7450 resistance. The bulls are now struggling to keep the price above the $0.5850 support zone.
- XRP began a fresh decline after failing to overcome the $0.7450 resistance.
- The price is now trading below $0.650 and the 100 simple moving average (4-hours).
- There is a bearish trend line forming with resistance at $0.640 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
- The pair could initiate a new rally if there is a close above the $0.6650 resistance zone.
XRP Price Trims Gains
After a steady rise, XRP price struggled to extend gains above the $0.750 resistance. The price started a negative correction from the high of $0.7442, as Ethereum It is Bitcoin.
There was a steady decline below the $0.700 and $0.665 support levels. The price even fell below the $0.600 support. A low was formed near $0.5874 and the price is now consolidating losses. There was a small increase above the $0.620 level.
The price spiked above the 23.6% Fibonacci retracement level of the downward move from the $0.7442 high to $0.5874 low. However, bears were active near $0.650. There is also a bearish trend line forming with resistance at $0.640 on the 4-hour chart of the XRP/USD pair.
Ripple token price is now trading below $0.620 and the 100 simple moving average (4-hours). On the upside, immediate resistance is near the $0.640 zone. The first key resistance is near $0.6650 or the 50% Fibonacci retracement level of the downward movement from the $0.7442 high to $0.5874 low, above which the price could rise towards the $0.70 resistance.
Source: XRPUSD on TradingView.com
A close above the $0.70 resistance zone could trigger a strong rise. The next key resistance is near $0.7450. If the bulls remain in action above the $0.7450 resistance level, there could be a rally towards the $0.800 resistance. Any further gains could send the price towards the $0.820 resistance.
More losses?
If XRP fails to break above the $0.6650 resistance zone, it could begin another decline. Initial negative support is near the $0.5980 zone.
The next major support is at $0.5850. If there is a downside breakout and a close below the $0.5850 level, the price could accelerate lower. In the stated case, the price could retest the $0.520 support zone.
Technical Indicators
4-hour MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Key support levels – $0.5980, $0.5850 and $0.5200.
Main resistance levels – $0.640, $0.6650 and $0.700.
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