The price of XRP has initiated a recovery wave from the $0.4320 support level, experiencing an increase of over 8%. However, it is now facing significant resistance near the $0.5120 zone, presenting challenges for further upward movement.
Key Points:
XRP price traded below the critical support levels of $0.500 and $0.4550.
The current trading level is below $0.5250 and the 100-hourly Simple Moving Average (SMA).
A key bearish trend line with resistance at $0.5120 is forming on the hourly chart of the XRP/USD pair (data source from Kraken).
Clearing the $0.5150 resistance zone is crucial for continued recovery.
XRP Price Starts Recovery Wave
XRP's price experienced extended losses, dipping below the $0.500 support level, similar to the movements observed in Ethereum and Bitcoin. The bears managed to push the price even lower, past the $0.4550 support zone, reaching a low at $0.4320. From this point, the price embarked on a recovery wave, moving above the $0.4550 and $0.480 resistance levels.
The price ascended beyond the 50% Fibonacci retracement level of the downward wave, which ranged from a $0.5765 swing high to the $0.4320 low. Despite these gains, XRP remains below $0.550 and the 100-hourly SMA. A notable bearish trend line with resistance at $0.5120 is evident on the hourly chart.
The bulls are now confronting a significant hurdle near the trend line and the $0.5150 level. The primary major resistance is around the $0.540 level and the 100-hourly SMA, close to the 76.4% Fibonacci retracement level of the downward wave from the $0.5765 high to the $0.4320 low.
The next crucial resistance point could be at $0.550. A decisive move above this resistance might propel the price toward $0.5550, with further resistance levels at $0.5680. Any additional gains could push the price toward the $0.580 or even $0.5880 levels in the near term.
Potential for Another Decline?
If XRP fails to overcome the $0.5120 resistance zone, it may face another downward trajectory. The initial support on the downside is near the $0.4880 level, followed by significant support at $0.4750. A downside break and close below this level might lead to a continued decline toward the $0.4500 support. The next major support is positioned at $0.4320.
Technical Indicators
Hourly MACD: The MACD for XRP/USD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index): The RSI for XRP/USD is now above the 50 level, indicating bullish momentum.
Support and Resistance Levels
Major Support Levels: $0.4880 and $0.4750
Major Resistance Levels: $0.5120 and $0.5400
As XRP attempts to navigate through these hurdles, traders will be closely watching the key resistance and support levels to gauge the potential for a sustained recovery or another decline.
Notice:
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