XRP Price Faces Another Downtrend: What Comes Next for the Cryptocurrency?
The XRP price has once again started to decline after facing resistance near the $0.5570 mark. As the price corrects its gains, there are concerns that it could experience a significant downfall if it breaks below the 100-hourly Simple Moving Average.
XRP struggled to surpass the $0.5570 zone, leading to a reduction in its gains. Currently, the price is trading below $0.5350 and the 100-hourly Simple Moving Average. On the hourly chart of the XRP/USD pair, there is a bearish trend line forming with resistance at $0.5320.
To prevent a sharp decline, it is crucial for the pair to maintain its position above the 100-hourly Simple Moving Average. However, the XRP price has dipped again after a period of steady growth, facing resistance at $0.5570. Afterward, there was a drop below the $0.5420 level and the price even breached the $0.5250 support and the 100-hourly Simple Moving Average.
On the positive side, the bulls are defending the 61.8% Fib retracement level of the upward move from the $0.5065 swing low to the $0.5571 high. Currently, the price is trading above $0.5250 and the 100-hourly Simple Moving Average. Immediate resistance can be found near the $0.5310 level, followed by a connecting bearish trend line with resistance at $0.5320.
For the price to experience significant gains, it needs to surpass the $0.5350 resistance level. If successful, the next key resistance levels would be $0.5450 and eventually $0.5570. Further gains could even push the price towards the $0.5650 resistance.
However, if the price fails to clear the $0.5350 resistance, there is a possibility of further decline. Initial support lies near the $0.5250 level and the 100-hourly SMA, with the next major support at $0.5185. If the price breaks below this level, it may gain bearish momentum and test the $0.5065 support in the near future.
In terms of technical indicators, the MACD for XRP/USD is currently showing bearish signals, while the RSI has fallen below the 50 level.
Overall, the XRP price is facing another round of downsides, and the cryptocurrency market will closely watch if it can overcome resistance levels or succumb to further decline.