The Ripple price is currently encountering strong resistance near the $0.520 level against the US dollar. Despite Bitcoin’s success, XRP is struggling to maintain a bullish stance. To sustain positive momentum, it is crucial for the XRP price to remain above the key support level at $0.472.
Breaking Down the Analysis:
A breakdown of a significant bullish trend line occurred, which previously had support near $0.4910 on the 4-hour XRP/USD chart sourced from Kraken. This led to a decline below the $0.50 support level. The bears successfully pushed the price further down, crossing the 50% Fibonacci retracement level from the swing low of $0.4550 to the high of $0.5263.
Current Market Situation:
Presently, XRP is trading above $0.52, along with the 55 simple moving average (4 hours). It is currently testing the 61.8% Fibonacci retracement level of the upward movement from $0.4550 to $0.5263. However, the price must be cautious as it faces resistance near $0.490 and the 55 simple moving average (4 hours). The next significant hurdle lies at the $0.5020 level.
Support and Resistance Levels:
If the XRP price fails to break above the mentioned resistance levels, a downside movement is expected. Initial support is found near the $0.4820 level, followed by a central support zone at $0.4715. A breach of this level could trigger acceleration toward the crucial $0.4550 support. Further losses might even lead to a decline toward the $0.432 mark.
Positive Outlook:
On the upside, a decisive move above the $0.5020 resistance could initiate a steady increase. This breakthrough may even propel the price past the $0.5150 resistance, crossing a connecting bearish trend line. If the momentum continues, the price could reach the $0.540 resistance level.
Technical Indicators:
Analyzing the 4-hour MACD for XRP/USD reveals a gaining momentum in the bearish zone. Additionally, the 4-hour RSI (Relative Strength Index) indicates a reading below the 50 level.
Conclusion:
Considering the current scenario, Ripple’s price is struggling to maintain a positive outlook, trading below the $0.50 zone and the 55 simple moving average (4 hours). It is crucial for XRP to remain above the key support level at $0.472 to prevent further decline. Traders and investors should closely monitor the price movement, particularly the resistance levels at $0.490 and $0.5020, to gauge the potential for a bullish recovery.
