XRP price is struggling to recover above the USD 0.5140 resistance. The price needs to remain above the USD 0.4550 support to attempt a new increase in the near term.
- XRP is attempting a recovery wave above the $0.450 zone.
- The price is now trading below $0.550 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance at $0.5440 on the 4-hour chart of the XRP/USD pair (Kraken data source).
- The pair could gain bearish momentum if there is a close below the $0.4550 support.
XRP price turns red
After a steady rise, XRP price struggled to break the USD 0.6420 resistance. It started a new decline below the $0.600 support, just like Bitcoin and Ethereum. There was a sharp move below the $0.500 support.
Finally, the price tested the $0.3880 zone. A low was formed at $0.3875 and the price started a recovery wave. There was a move above the USD 0.40 and USD 0.450 levels. The price climbed above the 23.6% Fib retracement level of the downward move from the $0.6420 swing high to the $0.3875 low.
The price is now trading below $0.550 and the 100 simple moving average (4 hours). Immediate resistance is near the $0.5140 level and the 50% Fib retracement level of the downward move from the $0.6420 swing high to the $0.3875 low.
The next major resistance is near USD 0.540. There is also a major bearish trendline forming with resistance at $0.5440 on the 4-hour chart of the XRP/USD pair. A close above the $0.540 resistance zone could lead to a strong upside. The next major resistance is near USD 0.600.
Source: XRPUSD on TradingView.com
If the bulls continue to act above the USD 0.600 resistance level, a rally towards the USD 0.6240 resistance could take place. Any further gains could send the price towards the USD 0.700 resistance.
Another drop?
If XRP fails to break the USD 0.5440 resistance zone, it could trigger a fresh decline. The initial downside support is near the USD 0.480 level.
The next major support is at USD 0.4550. If there is a downside break and a close below the USD 0.4550 level, the price may accelerate lower. In the said case, the price could retest the USD 0.420 support zone.
Technical indicators
4-hour MACD – The MACD for XRP/USD is now losing pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major support levels – $0.480, $0.4550 and $0.420.
Major resistance levels – $0.5140, $0.5440 and $0.600.
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