XRP Faces Bearish Momentum Below Key Support
XRP price has experienced a bearish trend, falling below the critical $0.4240 support zone, leading to a downward movement. The cryptocurrency is now trading below $0.4250 and the 100-hourly Simple Moving Average, indicating a challenging time for XRP traders. Here are some key points to consider:
- A key bearish trend line is emerging with resistance at $0.4150 on the hourly chart of the XRP/USD pair sourced from Kraken.
- Potential for a recovery, but limited upside with resistance levels at $0.4050 and $0.4150.
XRP Price Struggles Amid Resistance
XRP’s price encountered challenges in surpassing the $0.4550 resistance level, triggering a fresh downturn similar to other major cryptocurrencies like Bitcoin and Ethereum. This led to a decline below the crucial $0.4240 support, with the following developments:
- Price dropped significantly below $0.4150 support, eventually spiking below $0.400 to reach as low as $0.3826 before showing signs of correction.
- A corrective wave above $0.3920 resistance occurred, indicating a potential rebound from recent losses.
- Price surpassed the 23.6% Fib retracement level from the recent swing high of $0.4467 to the low of $0.3862.
However, XRP is currently struggling to break above the $0.4050 resistance level, facing a significant hurdle in the form of the $0.4150 resistance and a bearish trend line on the hourly chart of the XRP/USD pair.
Potential for Further Losses
If XRP fails to breach the $0.4150 resistance zone, there is a possibility of another downward movement. Key support levels to watch include:
- Initial support near $0.390 level, followed by a major support at $0.3850.
- A downside break and close below $0.3850 could lead to further decline towards the $0.3620 support in the short term.
Technical Indicators
As per the latest technical indicators, XRP/USD shows:
- Hourly MACD gaining momentum in the bearish zone, indicating a negative outlook for the cryptocurrency.
- Hourly RSI dropping below the 50 level, suggesting selling pressure in the market.
Key support and resistance levels to monitor are $0.390, $0.3850, $0.4050, and $0.4150, which will play a crucial role in determining XRP’s future price movements.
Hot Take: Stay Cautious Amid XRP’s Bearish Trend
As XRP faces bearish momentum and struggles to surpass key resistance levels, caution is advised for traders and investors. With potential for further losses and challenges in breaking above crucial levels, staying informed and monitoring the market closely is essential to navigate XRP’s current price volatility.
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