XRP price started a downside correction from the USD 0.580 resistance. The price could start a new rally unless there is a close below the USD 0.535 support.
- XRP is struggling to break the USD 0.5650 and USD 0.580 resistance levels.
- The price is now trading above USD 0.535 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support at $0.5350 on the 4-hour chart of the XRP/USD pair (Kraken data source).
- The pair could start another rally unless there is a close below the $0.535 support.
XRP Price Drops To Key Support
In recent days, XRP price rebounded higher from the $0.520 zone. There was a move above the USD 0.535 and USD 0.550 resistance levels. However, the bears remained active near the USD 0.580 resistance and protected more upsides such as Bitcoin and Ethereum.
The recent high was formed at $0.5792 before a downward correction took place. There was a move below the USD 0.550 level. The price even tested the $0.535 support. A low is formed near USD 0.5322 and the price is now consolidating losses.
Ripple’s token price is now trading above $0.535 and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support at $0.5350 on the 4-hour chart of the XRP/USD pair. On the upside, immediate resistance is near the $0.5550 zone. It is close to the 50% Fib retracement level of the downward move from the $0.5793 swing high to the $0.5322 low.
The first major resistance is near $0.5620 or the 61.8% Fib retracement level of the downward move from the $0.5793 swing high to the $0.5322 low, above which the price could rise towards the $0.580 resistance. A close above the $0.580 resistance zone could lead to a strong upside.
Source: XRPUSD on TradingView.com
The next major resistance is near USD 0.600. If the bulls continue to act above the USD 0.600 resistance level, a rally towards the USD 0.620 resistance could take place. Any further gains could send the price towards the USD 0.650 resistance.
Another drop?
If XRP fails to break the USD 0.5550 resistance zone, it could trigger another decline. The initial downside support is near the $0.535 zone and the trendline.
The next major support is at $0.5220. If there is a downside break and a close below the USD 0.5220 level, the price could accelerate lower. In the said case, the price could retest the USD 0.480 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 – $0.535, $0.522 and $0.480.
Major resistance levels – $0.555, $0.565 and $0.580.
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