Ripple’s token price started another drop of $0.5265 against the US dollar. XRP price could extend its decline unless it climbs above $0.50 again.
- Ripple token price drops below the $0.488 support against the US dollar.
- The price is now trading below $0.48 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance close to $0.475 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
- The pair could continue to drop below the USD 0.444 support in the near term.
Ripple’s Token Price Begins Downward Correction
In recent days, Ripple’s XRP saw a downside correction from $0.5265 resistance against the US dollar. It dipped below the $0.505 support zone, similar to Bitcoin and Ethereum.
The price gained bearish momentum below the USD 0.480 support zone. A low was formed near $0.446 and the price is now recovering losses. There was a move above the $0.450 and $0.455 resistance levels. XRP surpassed the 23.6% Fib retracement level of the downward move from the $0.5263 swing high to the $0.4460 low.
XRP price is now trading below $0.500 and the 100 simple moving average (4 hours). A major bearish trendline is also forming with resistance close to $0.475 on the 4-hour chart of the XRP/USD pair.
Initial resistance on the upside is near the $0.475 zone. The first major resistance is near the $0.448 level and the 100 simple moving average (4 hours). It is close to the 50% Fib retracement level of the downward move from the $0.5263 swing high to the $0.4460 low.
Source: XRPUSD at TradingView.com
A successful break above the $0.48 resistance level could send the price towards the $0.505 resistance. Any further gains may require a test of the $0.525 resistance.
New Decline in XRP?
If Ripple fails to clear the $0.48 resistance zone, it could trigger another drop. The first support on the downside is near the $0.455 zone.
The next major support is near $0.445. If there is a downside break and a close below the $0.445 level, the price of XRP could extend losses. In the said case, the price might retest the $0.425 support zone.
Technical indicators
4am MACD – The MACD for XRP/USD is now losing pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Main Support Levels – $0.455, $0.445 and $0.425.
Main resistance levels – $0.475, $0.480 and $0.500.
