Bulls Take Hit But This Level Could Trigger Another Increase

XRP price started a downside correction from the $0.580 resistance. The price could start a fresh rally unless there is a close below the $0.535 support.

• XRP is struggling to clear the $0.5650 and $0.580 resistance levels.
• The price is now trading above $0.535 and the 100 simple moving average (4 hours).
• There is a key bullish trend line forming with support at $0.5350 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
• The pair could start a fresh rally unless there is a close below the $0.535 support.

XRP Price Dips To Key Support

In the past few days, XRP price recovered higher from the $0.520 zone. There was a move above the $0.535 and $0.550 resistance levels. However, the bears remained active near the $0.580 resistance and protected more upsides, like Bitcoin and Ethereum.

The recent high was formed at $0.5792 before there was a downside correction. There was a move below the $0.550 level. The price even tested the $0.535 support. A low is formed near $0.5322 and the price is now consolidating losses.

Ripple’s token price is now trading above $0.535 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at $0.5350 on the 4-hour chart of the XRP/USD pair. On the upside, immediate resistance is near the $0.5550 zone. It is close to the 50% Fib retracement level of the downward move from the $0.5793 swing high to the $0.5322 low.

The first key resistance is near $0.5620 or the 61.8% Fib retracement level of the downward move from the $0.5793 swing high to the $0.5322 low, above which the price could rise toward the $0.580 resistance. A close above the $0.580 resistance zone could spark a strong increase.

Source: XRPUSD on TradingView.com

The next key resistance is near $0.600. If the bulls remain in action above the $0.600 resistance level, there could be a rally toward the $0.620 resistance. Any more gains might send the price toward the $0.650 resistance.

Another Decline?

If XRP fails to clear the $0.5550 resistance zone, it could start another decline. Initial support on the downside is near the $0.535 zone and the trend line.

The next major support is at $0.5220. If there is a downside break and a close below the $0.5220 level, the price might accelerate lower. In the stated case, the price could retest the $0.480 support zone.

Technical Indicators

4-Hours MACD – 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.

Major Support Levels – $0.535, $0.522, and $0.480.

Major Resistance Levels – $0.555, $0.565, and $0.580.

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