A connecting bearish trend line is forming with resistance near $0.5120 on the 4-hour chart of the XRP/USD pair (data feed from Kraken). The pair is now at risk of further declines below the $0.5000 support zone.
The XRP price is struggling to overcome the $0.520 resistance. The price could gain bearish momentum if it closes below the $0.4850 support. XRP is showing bearish signs below the $0.520 and $0.508 resistance levels. The price is now trading below $0.520 and the 100 simple moving average (4-hours).
XRP Price Faces Many Obstacles
Over the past few days, XRP price saw a downward reaction below the $0.550 pivot level. The bears remained active and were able to push the price below the $0.500 support zone.
Recently, there was a recovery wave above the $0.500 level. The bulls pushed the price above the 50% Fibonacci retracement level of the descending wave from the high of $0.5390 to the low of $0.4850.
However, the bears were active near the $0.525 resistance. The Ripple token failed to overcome the 76.4% Fibonacci retracement level of the descending wave from the high of $0.5390 to the low of $0.4850. XRP is now trading in a bearish zone below $0.508 and the 100 simple moving average (4-hours), unlike Bitcoin and Ethereum.
On the upside, immediate resistance is near the $0.512 area. There is also a connecting bearish trend line forming with resistance near $0.5120 on the 4-hour chart of the XRP/USD pair. The first key resistance is near $0.520, above which the price could rise towards the resistance of $0.5320.
A close above the $0.5320 resistance zone could lead to a sharp rise. The next key resistance is near $0.5550. If the bulls remain in action above the $0.5550 resistance level, there could be a rally towards the $0.5840 resistance. Any further gains could send the price towards the $0.6000 resistance.
XRP Fights Bearish Sentiments
All eyes are on XRP, focusing on maintaining its price above the $0.50 level as it is seen as a crucial anchor for the cryptocurrency to retest the $0.60 level. XRP has not reached the $0.60 mark again since mid-January, making it the primary target. In the short term, the price of XRP has fluctuated between $0.55 and $0.49.
Bulls perceive XRP’s current position favorably and see it as an opportunity to accumulate, hoping to push the price higher. This sentiment follows XRP’s recent formation of its first death cross for the year, marked by its short-term moving average crossing below the long-term moving average.
XRP encountered additional obstacles due to hacking incidents, resulting in the loss of 213 million XRP, equivalent to $112.5 million.
In response to the hack, cryptocurrency exchange Binance froze $4.2 million worth of XRP believed to be associated with the breach. In particular, this hack has caused a stir in the crypto space, with the first major one reported in 2024.
More Disadvantages?
If XRP fails to break above the $0.5120 resistance zone, it could continue to decline. Initial support on the downside is near the $0.500 zone. The next major support is at $0.485. If there is a break down and a close below the $0.485 level, the price could accelerate lower. In the given case, the price could retest the $0.450 support zone.
Below are the 4-Hour MACD Technical Indicators:
The MACD for XRP/USD is now gaining pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major Support Levels: $0.500, $0.485 and $0.450.
Main resistance levels: $0.512, $0.520 and $0.532.
By Audy Castaneda
