The XRP price falls below the $0.5200 support. The price could gain bearish momentum if a close occurs below the $0.50 support.
- XRP is showing bearish signs below the USD 0.525 and USD 0.512 resistance levels.
- The price is now trading below $0.520 and the 100 simple moving average (4 hours).
- There was a break below a key contracting triangle with support at $0.5220 on the 4-hour chart of the XRP/USD pair (Kraken data source).
- The pair is now at risk of more downside losses below the $0.5000 support zone.
XRP price is hit
In recent days, XRP price has moved heavily bearishly below the $0.550 support. The bears remained active near the USD 0.5500 resistance, protecting a recovery wave, unlike Bitcoin and Ethereum.
There was a fresh decline from the high of $0.5389 and the bears pushed the price below $0.5200. There was a steady decline and a break below a key contracting triangle with support at $0.5220 on the 4-hour chart of the XRP/USD pair.
The price is now trading below $0.520 and the 100 simple moving average (4 hours). A low is formed near USD 0.5012, and the price is now consolidating losses. On the upside, immediate resistance is near the $0.520 zone. It is close to the 50% Fib retracement level of the downward wave from the $0.5389 swing high to the $0.5012 low.
The first major resistance is near $0.530 or the 76.4% Fib retracement level of the downward wave from the $0.5389 swing high to the $0.5012 low, above which the price could rise towards the $0.5380 resistance.
Source: XRPUSD on TradingView.com
A close above the resistance zone at $0.5380 could lead to a strong upside. The next major resistance is near USD 0.5550. If the bulls continue to act above the USD 0.5550 resistance level, a rally towards the USD 0.5800 resistance could take place. Any further gains could send the price towards the USD 0.6000 resistance.
Main disadvantage of break?
If XRP fails to break the USD 0.5200 resistance zone, it could continue to decline. The initial downside support is near the $0.502 zone.
The next major support is at $0.500. If there is a downside break and a close below the USD 0.500 level, the XRP price may accelerate lower. In the said case, the price could retest the $0.450 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 – USD 0.505, USD 0.500 and USD 0.450.
Major resistance levels – $0.520, $0.538 and $0.550.
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.