XRP price is falling from the USD 0.732 resistance. The price is now at risk of more losses towards the USD 0.550 support before the bulls take a stand.
- XRP started a downward correction below USD 0.638 and USD 0.612.
- The price is now trading below $0.625 and the 100 simple moving average (4 hours).
- A major descending channel is forming with resistance near $0.622 on the 4-hour chart of the XRP/USD pair (Kraken data source).
- The pair dives towards the $0.550 support before the bulls take a stand.
XRP price turns red
In recent days, XRP has seen a steady decline from the $0.740 zone. There was a move below the USD 0.685 and USD 0.638 support levels. The price even dipped below the USD 0.612 support, underperforming Bitcoin and Ethereum.
There was a recovery wave from $0.572, but the bears were active around $0.638. A high was formed near $0.6385 and the price is now heading lower. There was a break below the 50% Fib retracement level of the upward move from the $0.5723 swing low to the $0.6385 high.
XRP is now trading below $0.625 and the 100 simple moving average (4 hours). A major descending channel is also forming with resistance near $0.622 on the 4-hour chart.
On the upside, immediate resistance is around the $0.615 level. The first major resistance is near the $0.622 zone or the 100 simple moving average (4 hours) or the upper channel zone. A close above the $0.622 resistance zone could lead to a steady rise.
Source: XRPUSD on TradingView.com
The next major resistance is near USD 0.638. If the bulls continue to act above the USD 0.638 resistance level, a rally towards the USD 0.700 resistance could take place. Any further gains could send XRP towards the USD 0.720 resistance.
More disadvantages?
If XRP fails to break the USD 0.622 resistance zone, it could trigger a fresh decline. The initial downside support is near the $0.588 zone.
The next major support is at USD 0.572. If there is a downside break and a close below the USD 0.572 level, the XRP price may accelerate lower. In the said case, the price could retest the USD 0.540 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 – $0.588, $0.572 and $0.540.
Major resistance levels – $0.622, $0.638 and $0.700.
