Ripple token price is showing bearish signs below USD 0.580 against the US Dollar. XRP price could start another drop if it trades below $0.480.
- Ripple’s token price is struggling to recover above $0.550 and $0.580 against the US dollar.
- The price is now trading below $0.56 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near $0.580 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
- The pair could start a fresh decline if there is a break below USD 0.480.
Ripple’s token price faces a tough task
After a major drop to $0.40, Ripple’s XRP began an upward correction against the US dollar. The price recovered a few points above the $0.45 and $0.48 resistance levels, similar to Bitcoin and Ethereum.
The bulls pushed the price above the 50% Fib retracement level of the main drop from the $0.6654 swing high to the $0.3995 low. The price climbed above the $0.50 level. However, the bears are operating near the $0.550 resistance zone.
XRP is now trading below USD 0.56 and the 100 simple moving average (4 hours). A major bearish trendline is also forming with resistance close to $0.580 on the 4-hour chart of the XRP/USD pair.
Initial resistance on the upside is near the $0.550 zone. The next major resistance is near the $0.565 level or the 61.8% Fib retracement level of the main drop from the $0.6654 swing high to the $0.3995 low. The main resistance is now forming near the $0.580 zone and the trendline.
Source: XRPUSD at TradingView.com
A successful break above the $0.580 resistance level can send the price towards the $0.60 resistance or the 100 simple moving average (4 hours). Any further gains may require a test of the $0.6650 resistance.
Another Drop in XRP?
If Ripple fails to clear the $0.565 resistance zone, it could trigger another drop. The first support on the downside is near the $0.500 zone.
The next major support is near $0.480. If there is a downside break and a close below the $0.480 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 losing 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 – $0.50, $0.480 and $0.40.
Main resistance levels – $0.550, $0.565 and $0.580.
