The price of XRP has started a new decline after diping close to $0.5570. The price is currently correcting the uptrend and can potentially see a larger drop if it sinks below the 100 hourly SMA.
- XRP struggled near $0.5570 and pared 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 sharp decline, this currency pair needs to stay above the 100-hour SMA.
XRP price falls again
After steadily rising, XRP price faced resistance near $0.5570. The price formed a short-term ceiling similar to Bitcoin and Ethereum, starting a new decline from $0.5571.
There was a move below the $0.5420 level. The price fell below the 50% Fib retracement level of the uptrend from the swing low of $0.5065 to the high of $0.5571. The price then 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 rise from the swing low of $0.5065 to the high of $0.5571, which is currently trading above $0.5250 and the 100 hourly simple moving average.
Immediate resistance is near $0.5310. Also, on his hourly chart of the XRP/USD pair, a bearish trend line has formed with resistance at $0.5320. The first significant resistance is near $0.5350. A close above the $0.5350 resistance zone could push the price higher.
The next major resistance is near the $0.5450 level. If the bulls can push 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.
Further drawbacks?
If XRP fails to break out of the $0.5350 resistance zone, the decline may continue. Downside support lies near the $0.5250 level and the 100-hourly SMA.
The next major support level is USD 0.5185. If there is a downside break and it closes below the $0.5185 level, the price could gain bearish momentum. In the above case, the price may fall and test the $0.5065 support in the short term.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is currently gaining momentum 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.
