XRP price started a downside correction from the USD 0.7450 resistance. The bulls are now struggling to keep the price above the $0.5850 support zone.
- XRP started a fresh decline after failing to clear the USD 0.7450 resistance.
- The price is now trading below $0.650 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance at $0.640 on the 4-hour chart of the XRP/USD pair (Kraken data source).
- The pair could start another rally if there is a close above the $0.6650 resistance zone.
XRP price cuts profits
After a steady rise, XRP price struggled to extend gains above the USD 0.750 resistance. The price started a downward correction from the high of $0.7442, just like Ethereum and Bitcoin.
There was a steady decline below the USD 0.700 and USD 0.665 support levels. The price even fell below the $0.600 support. A low was formed near USD 0.5874 and the price is now consolidating losses. There was a small increase above the USD 0.620 level.
The price peaked above the 23.6% Fib retracement level of the downward move from the $0.7442 swing high to the $0.5874 low. However, the bears were active around $0.650. There is also a major bearish trendline forming with resistance at $0.640 on the 4-hour chart of the XRP/USD pair.
Ripple’s 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 major resistance is near $0.6650 or the 50% Fib retracement level of the downward move from the $0.7442 swing high to the $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 lead to a strong upside. The next major resistance is near $0.7450. If the bulls continue to act above the USD 0.7450 resistance level, a rally towards the USD 0.800 resistance could take place. Any further gains could send the price towards the USD 0.820 resistance.
Lose more?
If XRP fails to break the USD 0.6650 resistance zone, it could trigger another decline. The initial downside support is near the $0.5980 zone.
The next major support is at USD 0.5850. If there is a downside break and a close below the USD 0.5850 level, the price may accelerate lower. In the said case, the price could retest the USD 0.520 support zone.
Technical indicators
4-hour MACD – The MACD for XRP/USD is now gaining speed in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major support levels – $0.5980, $0.5850 and $0.5200.
Major resistance levels – $0.640, $0.6650 and $0.700.
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