Ripple’s token price is currently displaying bearish signals as it struggles to surpass the $0.540 and $0.550 resistance levels against the US Dollar. If XRP fails to trade above $0.500, it could potentially initiate yet another decline.
After experiencing a significant drop to $0.40, Ripple’s XRP began a recovery phase against the US Dollar. Similar to Bitcoin and Ethereum, XRP managed to break the $0.48 and $0.50 resistance levels. Furthermore, it surpassed the $0.520 resistance, resulting in a spike above the 50% Fibonacci retracement level. However, the bulls find themselves facing a challenging obstacle at the $0.550 mark.
Unfortunately, XRP is still trading below the 100 simple moving average (4 hours) and the $0.540 level. Additionally, a major bearish trend line has formed with resistance near $0.540 on the 4-hour chart of the XRP/USD pair. If the price fails to pass the $0.550 resistance level, it could potentially trigger another decline.
Support and Resistance Levels
In the event of a decline, the initial support lies around the $0.505 zone. If this level is breached, the next significant support is at $0.500. A break and close below $0.500 could result in further losses for XRP, potentially leading to a retest of the $0.435 support zone.
On the upside, the first major resistance is positioned near the $0.540 zone and the trend line. Should XRP successfully break above this level, the next significant resistance lies at $0.550 or the 61.8% Fibonacci retracement level. Further gains might even push the price towards the $0.60 resistance, with the possibility of testing the $0.625 resistance.
The 4-hour MACD (Moving Average Convergence Divergence) for XRP/USD is currently losing momentum within the bullish zone. However, the 4-hour RSI (Relative Strength Index) for XRP/USD remains above the 50 level, indicating a potential for further upward movement.
Ripple’s XRP is currently facing difficulties in surpassing the $0.540 and $0.550 resistance levels against the US Dollar. The presence of a major bearish trend line adds to the overall bearish sentiment. A failure to overcome the $0.550 resistance zone might trigger another decline, with key support levels at $0.505, $0.500, and $0.435. Alternatively, a successful breakthrough could lead to an upward movement towards $0.60 and potentially even $0.625. Traders and investors should closely monitor XRP’s price action to determine its next move.