XRP price once again struggled to continue rising above the $0.5450 resistance level. It is now moving lower and may test the support area at $0.512.
- XRP is showing some bearish signs from the $0.5420 area.
- The price is now trading below the $0.5350 level and the 100 hourly simple moving average.
- There was a break below the key contracting triangle with support at $0.5360 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could gain downside momentum if it remains below the $0.5420 resistance area.
XRP price faces rejection
After closing above the $0.5320 level, XRP price extended its rise like Bitcoin and Ethereum. However, the bears were active near the resistance area at $0.5420.
A high was formed at $0.5422 and the price started a downward correction. There was a move below the $0.5320 support area and the 23.6% Fib retracement level of the upward move from the $0.5028 swing low to the $0.5422 swing high.
Moreover, there was a break below a key contracting triangle with support at $0.5360 on the hourly chart of the XRP/USD pair. The pair is now trading below the $0.5350 level and the 100 hourly simple moving average.
Immediate resistance is located near the $0.5320 level. The first major resistance is located near $0.5420. A close above the $0.5420 resistance area could send the price higher. The next major resistance is near $0.5450. If the bulls push the price above the $0.5450 resistance level, there could be a steady increase towards the $0.5550 resistance level. Any further gains may push the price towards the $0.5740 resistance level.
More losses?
If XRP fails to cross the $0.5420 resistance area, it could start another decline within the range. Initial support on the downside is near the $0.5225 level and the 50% Fib retracement level of the upward move from the $0.5028 swing low to the $0.5422 swing high.
The next major support is at $0.5120. If there is a downside breakout and close below $0.5120, the price may gain downward momentum. In the mentioned case, the price may decline and retest the support at $0.5025 in the near term.
Technical indicators
Hourly MACD – The MACD for XRP/USD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Key support levels – $0.5225 and $0.5120.
Key resistance levels – $0.5320 and $0.5420.
The post Another Setback or a Buying Opportunity? first appeared on Investorempires.com.
