XRP Price Dips To Support, Can It Bounce Back And Restart Increase?

7 June 2024

XRP price started a fresh decline from the $0.5320 resistance zone. It is now testing the $0.5180 support and might even test the $0.5120 support zone.

XRP failed near $0.5320 and started a downside correction.
The price is now trading below $0.5250 and the 100-hourly Simple Moving Average.
There is a connecting 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 dip further if it stays below the $0.5250 resistance zone.

XRP Price Dips Again

XRP price extended its increase above the $0.5265 level like Bitcoin and Ethereum. The price even spiked above the $0.5300 level before the bears appeared.

A high was formed at $0.5325 and the price started a downside correction. There was a move below the $0.5250 level. It traded below the 50% Fib retracement level of the upward wave from the $0.5080 swing low to the $0.5325 high.

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 $0.5080 swing low to the $0.5325 high.

On the upside, the price is facing resistance near the $0.5250 level. There is also a connecting bearish trend line forming with resistance near $0.5250 on the hourly chart of the XRP/USD pair. The first key resistance is near $0.5300. The next major resistance is near the $0.5320 level. A close above the $0.5320 resistance zone could send the price higher. The next key resistance is near $0.5450.

If there is a close above the $0.5450 resistance level, there could be a steady increase toward the $0.5520 resistance. Any more gains might send the price toward the $0.5650 resistance.

More Losses?

If XRP fails to clear the $0.5250 resistance zone, it could continue to move down. Initial support on the downside is near the $0.5165 level.

The next major support is at $0.5120. If there is a downside break and a close below the $0.5120 level, the price might accelerate lower. In the stated case, the price could decline and retest the $0.5020 support in the near term.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $0.5165 and $0.5120.

Major Resistance Levels – $0.5250 and $0.5320.

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