After a significant drop to $0.40, Ripple’s XRP started an upward correction against the US dollar.
The Ripple’s token price is showing bearish signs below $0.580 against the US Dollar. XRP price could start another slide if it trades below $0.480. The Ripple’s token price is struggling to recover above $0.550 and $0.580 against the US dollar.
The price is now trading below $0.56 and the 100 SMA (4-hours). A major downtrend line is forming with resistance near $0.580 on the 4-hours chart of the XRP/USD pair (data feed from Kraken). The pair could start another slide if there is a break below $0.480.
Ripple’s Token Price Faces Uphill Task
The Ripple’s price rallied a few points above the $0.45 and $0.48 resistance levels, similar to Bitcoin and Ethereum. The bulls pushed the price above the 50% Fibonacci retracement level of the main dip from the $0.6654 high to $0.3995 low. The price rallied above the $0.50 level.
However, the bears are active near the $0.550 resistance zone. XRP is now trading below $0.56 and the 100 simple moving average (4-hours). There is also a major downtrend line forming with resistance near $0.580 on the 4-hours chart of the XRP/USD pair.
Initial resistance to the upside is near the $0.550 zone. The next major resistance is near the $0.565 level or the 61.8% Fibonacci retracement level of the main decline from the $0.6654 high to $0.3995 low. The main resistance is now forming near the $0.580 area and the trend line.
A successful break above the $0.580 resistance level could send the price looking towards the $0.60 resistance or the 100 simple moving average (4-hours). Any further gains could require a test of the $0.6650 resistance.
Another Drop in XRP?
If the shock wave fails to break above the $0.565 resistance zone, it could start another slide. Initial support on the downside is near the $0.500 zone. The next major support is near $0.480.
If there is a break down and a close below the $0.480 level, XRP price could extend the losses. In the indicated case, the price could retest the $0.400 support zone.
Technical analysis on the daily time frame gives a bearish outlook for XRP. The main reason behind this analysis stems from wave counting and price action.
MACD 4-Hour Technical Indicators
The MACD for XRP/USD is now losing pace in the bearish zone. 4 Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
The main support levels are $0.50, $0.480, and $0.40, while the main resistance levels are $0.550, $0.565, and $0.580.
The XRP price prediction trend is bearish, but a strong bounce at the current level could initiate a 25% rally that would take the XRP price to $0.63. However, there are no immediate signs to support this possibility.
Cryptocurrency markets are highly volatile, making it difficult to accurately forecast what a currency will be in a few hours’ time, and even more difficult to give long-term estimates. So analysts could be wrong in their Ripple XRP forecasts, and they have.
Therefore, it is always important to do your own research and consider the latest market trends, news, technical and fundamental analysis, as well as expert opinion, before making any investment decision. In addition, it is recommended to only invest capital that you are willing to lose.
By Leonardo Pérez
