Ripple is struggling to clear the USD 0.5800 resistance against the US dollar. XRP price is showing bearish signs and it could accelerate below USD 0.5420.
- Ripple reached just above the USD 0.6000 level before starting a fresh decline against the US dollar.
- The price is now trading well below the USD 0.5680 support and the 100 hourly easy moving average.
- A major bearish trendline is forming with resistance near USD 0.5800 on the XRP / USD pair hourly chart (Kraken data source).
- The pair is likely to stay lower if there is a clear break below USD 0.5500 and USD 0.5420.
Ripple Price is showing bearish signals
There was a marked break below the USD 0.5800 and USD 0.5750 support levels. A major bearish trendline is also forming with resistance near $ 0.5800 on the hourly chart of the XRP / USD pair. In fact, the pair traded below the USD 0.5650 support and reached well below the 100 simple hourly moving average.
It peaked below the 50% Fib retracement level of the upward move from the $ 0.5024 swing low to $ 0.6059 high. An immediate support on the downside is near the USD 0.550 level. The first major support is near the USD 0.5420 level. It is close to the 61.8% Fib retracement level of the upward move from the $ 0.5024 swing low to the $ 0.6059 high.
Source: XRPUSD on TradingView.com
A successful close below the USD 0.5500 and USD 0.5420 support levels may trigger another decline in the coming sessions. In the case mentioned, there is a risk of a drop to $ 0.5200 support or even $ 0.5100.
Benefits limited in XRP?
If there is no downside break in ripple below the USD 0.5420 support, it could trigger a decent rise. An initial resistance on the upside is near the USD 0.5650 level. The first major resistance is near the USD 0.5720 level.
The main resistance is forming near the bearish trend line, $ 0.5800, and the 100 hour simple moving average. A close above the USD 0.5800 level could start a sharp rise towards USD 0.6000 and USD 0.6120 in the near term.
Hourly MACD – The MACD for XRP / USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP / USD is currently well below the 50 level.
Key Support Levels – USD 0.5500, USD 0.5420 and USD 0.5200.
Key Resistance Levels – USD 0.5650, USD 0.5700 and USD 0.5800.