XRP has entered a downside correction, retreating from its recent resistance level at $0.6480. The price is now testing the crucial $0.550 support level, which could be pivotal in determining the next move—whether it's a fresh increase or further decline.
XRP Price Overview
After struggling to extend gains above the $0.6450 and $0.650 levels, XRP began a downward correction, similar to the recent moves seen in Ethereum and Bitcoin. The price dipped below key support levels at $0.620 and $0.600, as well as the 100-hourly Simple Moving Average (SMA).
A significant bearish trend line is forming, with resistance around $0.5750 on the hourly chart of the XRP/USD pair (data source from Kraken). To initiate a fresh upward move, XRP would need to clear this $0.5750 resistance zone.
Current Price Action and Key Levels
XRP recently fell below the $0.5850 and $0.580 support levels, dipping under the 50% Fibonacci retracement level of the upward move from the $0.4925 low to the $0.6475 high. However, the bulls have shown activity near the $0.5500 support, which coincides with the 61.8% Fibonacci retracement level of the same upward wave.
Currently, XRP is trading below $0.600 and the 100-hourly SMA, facing immediate resistance near the $0.570 level. The first major resistance is at $0.5750, reinforced by the aforementioned bearish trend line. Beyond this, the next resistance lies at $0.580. A clear break above $0.580 could propel the price towards $0.5950, with further gains potentially leading to $0.620 or even a retest of the $0.650 level in the near term.
Potential Downsides
If XRP fails to overcome the $0.580 resistance, it could continue its decline. The initial support on the downside is near $0.5520, with the next major support at $0.550. A decisive break below $0.550 could lead to a deeper drop towards the $0.5320 support, and possibly further down to $0.5250.
Technical Indicators
Hourly MACD: The MACD for XRP/USD is gaining momentum in the bearish zone.
Hourly RSI: The RSI for XRP/USD is currently below the 50 mark, indicating bearish momentum.
Major Support Levels: $0.5550 and $0.5500
Major Resistance Levels: $0.5750 and $0.5800
The $0.550 support level will be crucial for XRP's price direction in the coming days. A rebound could signal a potential turnaround, while a break below might confirm further downside risk.
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