XRP price extended losses and tested the $0.5240 support level. The price is now consolidating and could struggle to spark another increase.
- XRP price fell further below the $0.5850 zone.
- The price is now trading below $0.580 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $0.5950 on the hourly chart of the XRP/USD pair (Kraken data source).
- The pair could struggle to recover above the USD 0.5950 and USD 0.600 resistance levels.
XRP Price Drops 5%
The XRP price extended its decline below the $0.600 level, underperforming Bitcoin and Ethereum. The price even fell heavily below the USD 0.5550 support zone.
A low was formed at $0.5231 and the price is now consolidating losses. There was a small move above the USD 0.5350 level. The price is still well below the 23.6% Fib retracement level of the downward move from the $0.6642 swing high to the $0.5231 low.
The price is now trading above USD 0.5550 and the 100-hourly Simple Moving Average. On the upside, the price could encounter resistance near the $0.5565 level. The first major resistance is around the $0.5950 level.
There is also a major bearish trendline forming with resistance at $0.5950 on the hourly chart of the XRP/USD pair. It is close to the 50% Fib retracement level of the downward move from the $0.6642 swing high to the $0.5231 low. The next major resistance could be at USD 0.600. A clear move above the USD 0.600 resistance could send the price towards the USD 0.6120 resistance. Any further gains could send the price towards the near-term resistance at $0.6250 or even $0.6320.
Lose more?
If XRP fails to break the USD 0.5565 resistance zone, it could continue to decline. The initial downside support is near the USD 0.530 level. The next major support is near the $0.5240 level.
If there is a downside break and a close below the $0.5240 level, the price could continue to decline towards $0.5050 in the near term. The next major support is near the $0.500 pivot zone.
Technical indicators
Hourly MACD – The MACD for XRP/USD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major support levels – $0.5240 and $0.5050.
Major resistance levels – $0.5565 and $0.5950.
