Ripple started a major decline below the USD 0.5000 support zone against the US dollar. XRP price even broke the USD 0.4500 support and it looks like there are chances of more losses.
- Ripple started a steady decline below USD 0.5000 and USD 0.4800 against the US dollar.
- The price is now trading well below USD 0.4750 and the simple 100 (4 hours) moving average.
- A strong downward channel is forming with resistance near USD 0.5330 on the XRP / USD pair’s 4-hour chart (Kraken data source).
- The pair is likely to stay lower if there is a clear break below the $ 0.4350 level.
Ripple’s XRP price is gaining bearish momentum
Yesterday we discussed the chance of a sharp drop in Ripple’s XRP price under $ 0.4750. There was no wave of recovery and the price started to decline sharply below the USD 0.4800 and USD 0.4750 support levels.
There was a break below the USD 0.4500 support and the price fell well below the simple 100 (4-hour) moving average. A new monthly low is forming near USD 0.4352 and the price is currently on consolidating losses. An initial resistance on the upside is near the USD 0.4650 level.
The first major resistance is near the USD 0.4720 level. It is close to the 50% Fib retracement level of the downward move from the $ 0.5944 high to the $ 0.4352 swing low.
Source: XRPUSD on TradingView.com
The main resistance is now forming near the USD 0.5000 zone. A major downward channel is also forming with resistance near USD 0.5330 on the 4-hour chart of the XRP / USD pair. If there is no recovery wave above USD 0.4650 or USD 0.4720, there is a risk of another decline.
The next big support is near the USD 0.4200 level. Even more losses could push the price towards the USD 0.4000 support zone in the near term.
Recovery in XRP?
If ripple starts a decent recovery wave above the USD 0.4650 resistance, the bulls may try to take control. A clear break above USD 0.4650 and USD 0.4720 could spell a decent recovery.
To get into a positive zone, the price must be above the USD 0.5000 level. A close above USD 0.5000 is likely to pump the price towards the USD 0.5500 level.
4-Hours MACD – The MACD for XRP / USD is gaining momentum in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP / USD is trying to recover from the oversold zone.
Key Support Levels – USD 0.4350, USD 0.4200 and USD 0.4000.
Key Resistance Levels – USD 0.4650, USD 0.4720 and USD 0.5000.