26 January 2024
XRP price is consolidating above the $0.50 support. The price could gain bearish momentum if there is a close below the $0.50 support.
XRP is showing bearish signs below the $0.525 and $0.550 resistance levels.
The price is now trading below $0.525 and the 100 simple moving average (4 hours).
There is a connecting bearish trend line forming with resistance near $0.520 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
The pair start a fresh increase if it clears the $0.520 and $0.525 resistance levels.
XRP Price Revisits Key Support
In the past few days, XRP price saw a fresh decline below the $0.550 support. The bears were able to push the price into a short-term bearish zone below $0.525, like Bitcoin and Ethereum.
The price even spiked below the $0.500 support. A low was formed near $0.4961, and the price is now consolidating losses. It is back above the $0.500 level and showing signs of a minor recovery wave. It is now trading below $0.525 and the 100 simple moving average (4 hours).
On the upside, immediate resistance is near the $0.520 zone. There is also a connecting bearish trend line forming with resistance near $0.520 on the 4-hour chart of the XRP/USD pair. The trend line is close to the 23.6% Fib retracement level of the downward wave from the $0.6240 swing high to the $0.4960 low.
The first key resistance is near $0.532, above which the price could rise toward the $0.560 resistance. It is close to the 50% Fib retracement level of the downward wave from the $0.6240 swing high to the $0.4960 low.
Source: XRPUSD on TradingView.com
A close above the $0.560 resistance zone could spark a strong increase. The next key resistance is near $0.594. If the bulls remain in action above the $0.594 resistance level, there could be a rally toward the $0.620 resistance. Any more gains might send the price toward the $0.650 resistance.
Another Drop?
If XRP fails to clear the $0.525 resistance zone, it could start a fresh decline. Initial support on the downside is near the $0.500 zone.
The next major support is at $0.495. If there is a downside break and a close below the $0.495 level, XRP price might accelerate lower. In the stated case, the price could retest the $0.450 support zone.
Technical Indicators
4-Hours MACD – The MACD for XRP/USD is now losing pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major Support Levels – $0.500, $0.495, and $0.450.
Major Resistance Levels – $0.520, $0.525, and $0.560.