Ripple failed to clear the USD 0.6150 resistance and broke a large support of USD 0.5740 against the US dollar, on par with bitcoin and ETH. XRP price is likely to decline further to USD 0.5100 or even USD 0.4500.
- Ripple started a major decline after breaking the key USD 0.5740 support zone against the US dollar.
- The price is now trading well below the $ 0.5740 zone and the 100 simple moving average (4 hours).
- There was a pause below yesterday’s highlighted pivotal contracts triangle with support at USD 0.5880 on the XRP / USD pair’s 4-hour chart (Kraken data source).
- The pair could retest at USD 0.5740 before extending its drop to USD 0.5000.
Ripple’s XRP price is gaining bearish momentum
XRP also followed a similar pattern, breaking some key supports near USD 0.5880 and USD 0.5740. There was a clear break below the 50% Fib retracement level from the main upward move from the $ 0.4548 swing low to the $ 0.6919 high.
More importantly, there was a break below yesterday’s crucial contracting triangle with support at USD 0.5880 on the XRP / USD pair’s 4-hour chart. The price is now trading well below the $ 0.5740 zone and the 100 simple moving average (4 hours).
Source: XRPUSD on TradingView.com
It is testing the USD 0.5450 support level. It is close to the 61.8% Fib retracement level of the upward move from the $ 0.4548 swing low to the $ 0.6919 high.
If there is a marked break below the USD 0.5450 support level, the price may continue to decline. The next big support is near the USD 0.5000 level, below which the bears could try a test of the USD 0.4500 support.
Benefits limited in XRP?
If ripple starts a corrective raise above $ 0.5600, it could face hurdles. The first major resistance is near the USD 0.5740 level (the recent breakdown zone).
The next big resistance is near the USD 0.6000 level or the 100 simple moving average (4 hours). As long as the price is below the USD 0.5740 resistance, it remains at risk of more losses in the near term.
4-Hours MACD – The MACD for XRP / USD is gaining momentum in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for XRP / USD is currently well below the 40 level.
Key Support Levels – USD 0.5450, USD 0.5200 and USD 0.5000.
Key Resistance Levels – USD 0.5740, USD 0.5880 and USD 0.6000.