XRP price started a new decline from the $0.5320 resistance area. It is now testing the $0.5180 support and may also test the $0.5120 support area.
- XRP failed near $0.5320 and a bearish correction began.
- The price is now trading below $0.5250 and the 100 hourly simple moving average.
- There is a solid bearish trend line forming with resistance near $0.5250 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could fall further if it remains below the $0.5250 resistance area.
XRP prices drop again
XRP price continued to rise above the $0.5265 level like Bitcoin and Ethereum. The price even rose above the $0.5300 level before the bears appeared.
The high was formed at $0.5325 and the price started a downward correction. There was a move below the $0.5250 level. It traded below the 50% Fibonacci retracement level of the upward wave from the swing low at $0.5080 to the swing high at $0.5325.
The price is now trading below $0.5250 and the 100 hourly simple moving average. However, the bulls are active near the 61.8% Fib retracement level of the upward wave from the swing low at $0.5080 to the swing high at $0.5325.
On the upside, the price is facing resistance near the $0.5250 level. There is also a solid bearish trend line forming with resistance near $0.5250 on the hourly chart of the XRP/USD pair. The first major resistance is located near $0.5300. The next major resistance is near the $0.5320 level. A close above the $0.5320 resistance area could send the price higher. The next major resistance is near $0.5450.
If there is a close above the $0.5450 resistance level, then there could be a steady increase towards the $0.5520 resistance level. Any further gains may push the price towards the $0.5650 resistance level.
More losses?
If XRP fails to cross the $0.5250 resistance area, it may continue to move lower. Initial support on the downside is located near the $0.5165 level.
The next major support is at $0.5120. If there is a downside breakout and close below $0.5120, the price may accelerate downwards. In the mentioned case, the price may decline and retest the support at $0.5020 in the near term.
Technical indicators
Hourly MACD – The MACD for XRP/USD is now losing speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Key support levels – $0.5165 and $0.5120.
Key resistance levels – $0.5250 and $0.5320.
