XRP price failed to hold above the $0.4840 support zone. The price fell and tested the USD 0.4750 support zone and is now at risk of more losses.
- XRP extended losses and traded below the $0.4840 support zone.
- The price is now trading below $0.4880 and the 100-hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance at $0.4880 on the hourly chart of the XRP/USD pair (Kraken data source).
- The pair could rally, but upside potential could remain limited above the $0.4920 resistance.
XRP Price Extends Losses
XRP price failed to recover above the $0.4950 resistance like Ethereum and Bitcoin. The price started a new decline from the high of $0.4981. There was a move below the USD 0.4880 and USD 0.4850 levels.
The price fell below the USD 0.480 level. A low was formed at $0.4746 and the price is now consolidating losses. It tests the 23.6% Fib retracement level of the recent decline from the $0.4981 swing high to the $0.4746 low. The price is now trading below $0.4920 and the 100-hourly Simple Moving Average.
If the bulls protect the support at $0.4740, there could be an upside correction. On the upside, the price is facing resistance near the $0.4820 level. The first major resistance is near $0.4850 or the 50% Fib retracement level of the recent decline from the $0.4981 swing high to the $0.4746 low.
A connecting bearish trendline is also forming with resistance at $0.4880 on the hourly chart of the XRP/USD pair. The next major resistance is near the $0.4950 level.
A close above the USD 0.4950 resistance zone could send the price higher. The next major resistance is near $0.5050. If there is a close above the USD 0.5050 resistance level, there could be a steady rise towards the USD 0.5250 resistance. Any further gains could send the price towards the resistance at USD 0.5320.
More disadvantages?
If XRP fails to break the USD 0.4850 resistance zone, it could continue to decline. The initial downside support is near the $0.4740 level.
The next major support is at USD 0.470. If there is a downside break and a close below the USD 0.470 level, the price may gain bearish momentum. In the said case, the price could fall and retest the USD 0.450 support in the near term.
Technical indicators
Hourly MACD – The MACD for XRP/USD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major support levels – $0.4740 and $0.4700.
Major resistance levels – $0.4850 and $0.4920.