Ripple’s token price is showing bearish signs below $0.550 against the US Dollar. XRP price could start another decline if it trades below $0.500.
- Ripple’s token price is struggling to recover above $0.540 and $0.550 against the US dollar.
- The price is now trading below $0.550 and the 100 simple moving average (4 hours).
- There is a major bearish trend line forming with resistance near $0.540 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
- The pair might start another decline if there is a break below $0.500.
Ripple’s Token Price Eyes Fresh Increase
After a sharp decline to $0.40, Ripple’s XRP started a recovery wave against the US Dollar. The price recovered above the $0.48 and $0.50 resistance levels, like Bitcoin and Ethereum.
The price was able to surpass the $0.520 resistance as well. Finally, there was a spike above the 50% Fib retracement level of the key drop from the $0.6655 swing high to the $0.3995 low. The bulls are now facing an uphill task near $0.550.
XRP is still trading below $0.540 and the 100 simple moving average (4 hours). There is also a major bearish trend line forming with resistance near $0.540 on the 4-hour chart of the XRP/USD pair.
Source:
Initial resistance on the upside is near the $0.540 zone and the trend line. The next major resistance is near the $0.550 level or the 61.8% Fib retracement level of the key drop from the $0.6655 swing high to the $0.3995 low. A successful break above the $0.550 resistance level might send the price toward the $0.60 resistance. Any more gains might call for a test of the $0.625 resistance.
Another Drop in XRP?
If ripple fails to clear the $0.550 resistance zone, it could start another decline. Initial support on the downside is near the $0.505 zone.
The next major support is at $0.500. If there is a downside break and a close below the $0.500 level, XRP’s price could extend losses. In the stated case, the price could retest the $0.435 support zone.
Technical Indicators
4-Hours MACD – The MACD for XRP/USD is now losing pace in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major Support Levels – $0.505, $0.500, and $0.435.
Major Resistance Levels – $0.540, $0.550, and $0.600.