Price Correction in XRP: What You Need to Know
XRP has been correcting its losses recently, trying to recover from the downward trend that it had experienced. Here is what you need to know about the current situation with XRP:
Key Resistance and Support Levels
- XRP is correcting losses above the $0.4820 and $0.4840 levels.
- The price is now trading below $0.5050 and the 100-hourly Simple Moving Average.
- There is a connecting bullish trend line forming with support at $0.4950 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could dip again if it stays below the $0.5050 resistance zone.
XRP Price Takes Hit
XRP price started a major decline like Ethereum and declined below the $0.50 support. The price even spiked below the $0.4650 support zone. A low was formed at $0.4533 and the price is now correcting losses.
There was a move above the $0.470 and $0.4750 resistance levels. The price climbed above the 50% Fib retracement level of the downward move from the $0.5271 swing high to the $0.4533 low. There is also a connecting bullish trend line forming with support at $0.4950 on the hourly chart of the XRP/USD pair.
The pair is slowly moving above the 61.8% Fib retracement level of the downward move from the $0.5271 swing high to the $0.4533 low. However, it is still trading below $0.5050 and the 100-hourly Simple Moving Average.
On the upside, the price is facing resistance near the $0.500 level. The first key resistance is near $0.5050. The next major resistance is near the $0.5120 level. A close above the $0.5120 resistance zone could send the price higher. The next key resistance is near $0.5250.
If there is a close above the $0.5250 resistance level, there could be a steady increase toward the $0.5320 resistance. Any more gains might send the price toward the $0.550 resistance.
Another Drop?
If XRP fails to clear the $0.5050 resistance zone, it could start another decline. Initial support on the downside is near the $0.4950 level and the trend line.
The next major support is at $0.4900. If there is a downside break and a close below the $0.490 level, the price might accelerate lower. In the stated case, the price could decline and retest the $0.4740 support in the near term.
Technical Indicators
Here are some technical indicators to consider:
- 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 above the 50 level.
Key Price Levels
Keep an eye on the following key price levels:
- Major Support Levels – $0.4950 and $0.4900.
- Major Resistance Levels – $0.500 and $0.5050.
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