XRP price started a new decline after failing near $0.5570. The price is now correcting its gains and could fall sharply if it breaks the 100 hourly simple moving average.
- XRP struggled near the $0.5570 area and pared its gains.
- The price is now trading below the $0.5350 level and the 100 hourly simple moving average.
- There is a solid bearish trend line forming with resistance at $0.5320 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair must stay above the 100 hourly simple moving average to avoid a sharp decline.
XRP price is falling again
After a steady increase, XRP price faced resistance near $0.5570. The price formed a short-term top and started a new decline from $0.5571, like Bitcoin and Ethereum.
There was a move below the $0.5420 level. The price fell below the 50% Fibonacci retracement level of the upward move from the swing low at $0.5065 to the swing high at $0.5571. The price even broke below the $0.5250 support level and the 100 hourly simple moving average.
However, the bulls are protecting the 61.8% Fib retracement level of the upward move from the $0.5065 swing low to the $0.5571 swing high. It is now trading above $0.5250 and the 100 hourly simple moving average.
Immediate resistance is located near the $0.5310 level. There is also a solid bearish trend line forming with resistance at $0.5320 on the hourly chart of the XRP/USD pair. The first major resistance is located near $0.5350. A close above the $0.5350 resistance area could send the price higher.
The next major resistance is near $0.5450. If the bulls push the price above the $0.5450 resistance level, there could be a steady increase towards the $0.5570 resistance level. Any further gains may push the price towards the $0.5650 resistance level.
More negatives?
If XRP fails to cross the $0.5350 resistance area, it may continue to move lower. Initial support on the downside is near the $0.5250 level and the 100 hourly simple moving average.
The next major support is at $0.5185. If there is a downward breakout and close below $0.5185, the price may gain downward momentum. In the mentioned case, the price may decline and test the support at $0.5065 in the near term.
Technical indicators
Hourly MACD – The MACD for XRP/USD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Key support levels – $0.5250 and $0.5185.
Key resistance levels – $0.5350 and $0.5450.