XRP price has started a new decline after diping near $0.5570. The price is now correcting the upside and could see a sharp drop if it breaks below the 100 hourly SMA.
- XRP struggled near the $0.5570 zone, paring its gains.
- The price is currently trading below $0.5350 and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming resistance at $0.5320 on the hourly chart of the XRP/USD pair (data source is Kraken).
- To avoid a sharper decline, the pair must stay above the 100 hourly SMA.
XRP price falls again
XRP price faced resistance near $0.5570 after a steady rise, with the price forming a short-term ceiling similar to Bitcoin and Ethereum and beginning a new decline from $0.5571.
There was a move below the $0.5420 level. Price has fallen below the 50% Fibonacci retracement level of the swing low of $0.5065 to the high of $0.5571. Price surged below the support at $0.5250 and the 100 hourly simple moving average.
However, the bulls are defending the 61.8% Fib retracement level of the move from the swing low of $0.5065 to a high of $0.5571. Currently, it is trading above $0.5250 and the 100 hourly simple moving average.
Immediate resistance is near USD 0.5310. There is also a connecting bearish trend line forming resistance at $0.5320 on the hourly chart of the XRP/USD pair. The first major resistance level is near $0.5350. If the price closes above the $0.5350 resistance zone, the price could move higher.
The next major resistance is near the $0.5450 level. If the bulls can propel the price above the $0.5450 resistance, it can steadily move towards the $0.5570 resistance. Any further upside can push the price towards the $0.5650 resistance.
Are there any further drawbacks?
If XRP fails to break out of the $0.5350 resistance zone, it may continue declining. Initial support on the decline is near the $0.5250 level and the 100-hour SMA.
The next major support is $0.5185. If the price breaks down and closes below $0.5185, the price could gain bearish momentum. In that case, the price could fall and test the $0.5065 support in the short term.
Technical Indicators
Hourly MACD – The XRP/USD MACD is currently pacing in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently below the 50 level.
Major support levels – $0.5250 and $0.5185.
Key resistance levels – $0.5350 and $0.5450.
