XRP Price Faces Challenges: Can It Overcome the Roadblocks?
The price of XRP is slowly making progress above the $0.5200 mark, but it now confronts obstacles near $0.5320 and may experience a correction in the near future.
- XRP is making an attempt to rise above the $0.5250 range.
- The price is currently trading above $0.5220 and the 100-hourly Simple Moving Average.
- A key bullish trend line with support at $0.5260 was broken by a decline on the hourly chart of the XRP/USD pair (data source from Kraken).
- Before the bulls make an appearance again, the pair may correct downward towards the $0.5220 support level.
XRP Price Gains Momentum
XRP price remained well-supported above the $0.5120 range and saw an extension in its ascent, just like Bitcoin and Ethereum. The price managed to surpass the $0.5200 and $0.5250 levels.
It made a clear move above the $0.5300 resistance and reached the $0.5320 range. A high was achieved at $0.5325, and the price is now correcting its gains. It fell below the 23.6% Fib retracement level of the upward movement from the $0.5080 swing low to the $0.5325 high.
Additionally, there was a break below a significant bullish trend line with support at $0.5260 on the hourly chart of the XRP/USD pair. However, the pair is currently trading above $0.5220 and the 100-hourly Simple Moving Average.
On the upside, the price is confronting resistance near the $0.5200 level. The first major resistance exists at around $0.5320 while the next significant resistance lies near the $0.5350 range. If the price manages to close above the resistance at $0.5350, it could rally further. Ultimately, the next key resistance level is near $0.550.
If the price successfully breaches the resistance level at $0.550, there could be a steady rise toward the resistance at $0.5560. Subsequent gains might lead the price toward the resistance at $0.5650.
More Downside?
If XRP fails to surpass the resistance zone at $0.5350, it might continue its descent. The initial support on the downside is near the $0.5260 level.
The next major support level exists at $0.5200 or the 50% Fib retracement level of the upward movement from the $0.5080 swing low to the $0.5325 high. If there is a downward break and a close below the $0.520 level, the price might accelerate further downwards. In such a scenario, the price could potentially decline and retest the support at $0.5120 in the near term.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now losing momentum within the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major Support Levels – $0.5260 and $0.5220.
Major Resistance Levels – $0.5300 and $0.5320.