Key Takeaways:
XRP price traded below the key support at $0.50 and the 50-day simple moving average (blue).
It traded below an important contracting triangle with support at $0.510 on the daily chart.
The price is now signaling a medium-term downtrend and might dive toward the $0.4150 support.
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NEW DELHI (CoinChapter.com) — XRP failed to clear the $0.550 resistance and took a major hit. The price settled below $0.50 and is now at risk of more downsides.
XRP Price Signals Breakdown
In the past few analyses, we discussed the next major break with a crucial contracting triangle on the daily chart of XRP. The bulls made a couple of attempts to clear the $0.550 resistance and the 50-day simple moving average (blue). However, there was no real bullish momentum like Bitcoin and Ethereum.
As a result, there was a strong bearish reaction. The price declined below the key support at $0.50, and an important contracting triangle with support was $0.510 on the daily chart. It even dived below the 50% Fib retracement level of the upward move from the $0.4154 swing low to the $0.5707 high.
XRP price daily chart | Source: TradingView.com
It seems like there was a clear breakdown and a daily close below $0.50 on the daily chart. The price is now consolidating losses below the triangle trend line.
In the short term, XRP might attempt a recovery wave to retest the same triangle zone (support turned resistance) at $0.500 and $0.510. If the bulls fail to pump the price above $0.510, there could be a fresh decline.
Immediate support sits near the $0.4740 zone. The first major support sits at $0.4520 and the 76.4% Fib retracement level of the upward move from the $0.4154 swing low to the $0.5707 high.
The next key support is near the $0.4150 level, below which the price could slide and test the $0.400 support. A downside break below the $0.400 support might set the pace for more losses. In the stated case, the price may decline toward the $0.3450 level.
Fundamentally, Ripple continues to expand and grow. Recently, it announced USD (RLUSD): A 1:1 USD-backed stablecoin, offering transparency and stability on the XRP Ledger and Ethereum.
Introducing Ripple USD (RLUSD): A 1:1 USD-backed stablecoin, offering transparency and stability on the XRP Ledger and Ethereum. Coming later this year. Sign up to receive the latest stablecoin news, content and availability: https://t.co/ifguG77bO6
— Ripple (@Ripple) June 12, 2024
Recovery Ahead?
XRP price might recover steadily and reclaim $0.510. The first major resistance is near the $0.520 level and the 50-day simple moving average (blue). The main resistance is now near the $0.550 zone.
A daily close above the $0.550 resistance might start a fresh surge. In the stated case, the price might climb and test the $0.620 resistance. In the stated case, there are high chances of a move toward the $0.6660 resistance zone. The next target for the bulls might be $0.700.
Overall, XRP price is signaling a major bearish breakdown below $0.50. Therefore, there could be more downsides toward $0.40 unless there is a daily close above $0.510 and $0.520 in the coming days.
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