Ripple’s token price is down more than 20% against the US dollar. XRP price is gaining bearish momentum and could revisit the $0.40 zone.
- The token price of Ripple is falling from the $0.620 resistance against the US dollar.
- The price is now trading below $0.55 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance close to $0.585 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
- The pair could continue to decline towards $0.42 and $0.40.
Ripple token price drops to $0.40
After struggling to break above the $0.65 resistance, Ripple’s XRP started another decline against the US dollar. There was a sharp drop below the $0.550 support zone, similar to Bitcoin and Ethereum.
The price is down more than 20% and there was even a spike below $0.420. A low is forming near $0.3994 and the price is now trying to make a recovery wave. There was a wave above the $0.45 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $0.6365 swing high to the $0.3994 low.
XRP is now trading below $0.55 and the 100 simple moving average (4 hours). A major bearish trendline is also forming with resistance close to $0.585 on the 4-hour chart of the XRP/USD pair.
Initial resistance on the upside is near the $0.520 zone. It is close to the 50% Fib retracement level of the downward move from the $0.6365 swing high to the $0.3994 low. The next major resistance is near the $0.550 level. The main resistance is now forming near the $0.585 zone and the trendline.
Source: XRPUSD at TradingView.com
A successful break above the $0.585 resistance level can send the price towards the $0.62 resistance or the 100 simple moving average (4 hours). Any further gains may require a test of the $0.650 resistance.
Another drop in XRP?
If Ripple fails to clear the $0.550 resistance zone, it could trigger another drop. The first support on the downside is near the $0.480 zone.
The next major support is near $0.455. If there is a downside break and an exit below the $0.455 level, the price of XRP could extend losses. In the said case, the price might retest the $0.400 support zone.
Technical indicators
4am MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Main Support Levels – $0.48, $0.455 and $0.400.
Main resistance levels – $0.520, $0.550 and $0.585.
