Ripple token price is showing bearish signs below USD 0.550 against the US Dollar. XRP price could drop again if it trades below $0.500.
- Ripple token price is struggling to recover above USD 0.540 and USD 0.550 against the US Dollar.
- The price is now trading below USD 0.550 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near USD 0.540 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
- The pair could drop again if it breaks below $0.500.
Ripple token price looks fresh
After falling sharply to USD 0.40, Ripple’s XRP started a recovery wave against the US Dollar. The price recovered above the USD 0.48 and USD 0.50 resistance levels like those of Bitcoin and Ethereum.
The price also managed to surpass the USD 0.520 resistance. Finally, there was a spike above the 50% Fib retracement level of the main decline from the $0.6655 swing high to the $0.3995 low. The bulls are now facing an uphill task near $0.550.
XRP is still trading below USD 0.540 and the 100 simple moving average (4 hours). A major bearish trendline is also forming with resistance near USD 0.540 on the 4-hour chart of the XRP/USD pair.
Source: XRPUSD at TradingView.com
Initial resistance on the upside is near the USD 0.540 zone and trendline. The next major resistance is near the $0.550 level or the 61.8% Fib retracement level of the main drop from the $0.6655 swing high to the $0.3995 low. A successful break above the USD 0.550 resistance level could push the price towards the USD 0.60 resistance. Further gains might require a test of the USD 0.625 resistance.
Another Drop in XRP?
If Ripple fails to break the USD 0.550 resistance zone, it could spark another decline. The initial downside support is near the USD 0.505 zone.
The next major support is at USD 0.500. If there is a downside break and a close below the USD 0.500 level, XRP price could extend losses. In the said case, the price might retest the USD 0.435 support zone.
Technical indicators
4-Hour MACD – The MACD for XRP/USD is now losing pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Key Support Levels – $0.505, $0.500 and $0.435.
Key resistance levels – $0.540, $0.550 and $0.600.
