XRP Price at Risk of Another Drop: Analyzing the Main Factors
XRP price has embarked on a recovery path after finding support at $0.4620. However, it is currently struggling to break above $0.4780, indicating a possible resumption of its downward trend.
- After hitting the $0.4620 support level, XRP price is attempting to recover.
- It is currently trading below $0.4800 and the 100-hourly Simple Moving Average.
- An important bearish trend line is forming with resistance at $0.4770 on the XRP/USD hourly chart.
- The price could face resistance near $0.4780 and $0.4800.
XRP Price Faces Resistance
XRP price, like Bitcoin and Ethereum, has extended its losses below $0.480. It even dipped below $0.4650 and tested the $0.4620 zone, reaching a low of $0.4619 before starting to recover.
The price moved above the $0.4700 and $0.4720 resistance levels. It even surpassed the 50% Fibonacci retracement level of the downward wave from the $0.4885 swing high to the $0.4620 low. However, sellers are actively preventing further gains near the $0.4780 zone.
Sellers are defending the 61.8% Fibonacci retracement level of the downward wave from the $0.4885 swing high to the $0.4620 low. Additionally, a key bearish trend line is forming with resistance at $0.4770 on the XRP/USD hourly chart.
The price is currently trading below $0.4800 and the 100-hourly Simple Moving Average. On the upside, it faces resistance around the $0.4770 level, with the first significant resistance at $0.4800.
A clear move above the $0.4800 resistance could propel the price towards the $0.4885 resistance. The next major resistance is around $0.5050. A close above the $0.5050 resistance zone could lead to further gains, with the next key resistance near $0.5250. Subsequent gains could push the price towards the $0.5500 resistance.
Another Decline?
If XRP fails to break above the $0.4800 resistance zone, it could experience another decline. The initial support on the downside is near $0.4685.
The next significant support level is at $0.4620. If the price breaks below this level and closes below it, it could gather bearish momentum. In this scenario, the price might even drop below the $0.450 support in the near future.
Technical Indicators
The hourly MACD for XRP/USD is currently losing pace in the bullish zone.
The hourly RSI (Relative Strength Index) for XRP/USD is approaching the 50 level.
Major Support Levels – $0.4685 and $0.4620.
Major Resistance Levels – $0.4770 and $0.4800.