XRP price is struggling to break the USD 0.520 resistance. The price could gain bearish momentum if a close occurs below the $0.4850 support.
- XRP is showing bearish signs below the USD 0.520 and USD 0.508 resistance levels.
- The price is now trading below $0.520 and the 100 simple moving average (4 hours).
- A connecting bearish trendline is forming with resistance near $0.5120 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 facing many hurdles
In recent days, XRP price saw a downward reaction below the pivot level of $0.550. The bears remained active and managed to push the price below the $0.500 support zone.
Recently, there was a recovery wave above the USD 0.500 level. The bulls pushed the price above the 50% Fib retracement level of the downwave, from the $0.5390 swing high to the $0.4850 low. However, the bears were active near the USD 0.525 resistance.
Ripple’s token failed to clear the 76.4% Fib retracement level of the downward wave from the $0.5390 swing high to the $0.4850 low. XRP is now trading in a bearish zone below $0.508 and the 100 simple moving average (4 hours), unlike Bitcoin and Ethereum.
On the upside, immediate resistance is near the $0.512 zone. A connecting bearish trendline is also forming with resistance near $0.5120 on the 4-hour chart of the XRP/USD pair. The first major resistance is near USD 0.520, above which the price could rise towards the resistance at USD 0.5320.
Source: XRPUSD on TradingView.com
A close above the resistance zone at $0.5320 could lead to a strong upside. The next major resistance is near USD 0.5550. If the bulls continue to act above the resistance level at $0.5550, a rally towards the resistance at $0.5840 could take place. Any further gains could send the price towards the USD 0.6000 resistance.
More disadvantages?
If XRP fails to break the USD 0.5120 resistance zone, it could continue falling. The initial downside support is near the $0.500 zone.
The next major support is at USD 0.485. If there is a downside break and a close below the USD 0.485 level, the 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 0.500, USD 0.485 and USD 0.450.
Major resistance levels – $0.512, $0.520 and $0.532.
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