The XRP price has been struggling to recover above the $0.5050 resistance zone, leading to a downward movement with the potential to gain bearish momentum below the $0.480 support. Despite attempts to climb above $0.500 and the 100-hourly Simple Moving Average, XRP is facing challenges in maintaining a positive trend.
A significant development was the break below a connecting bullish trend line with support at $0.4950 on the hourly chart of the XRP/USD pair, indicating a shift in market sentiment. This breakdown raises concerns that the pair could face a substantial decline if it fails to hold above the $0.480 support zone.
XRP price recently attempted a recovery wave above $0.4920, aligning with movements in Ethereum and Bitcoin. Despite briefly climbing above the $0.500 resistance zone, the bears quickly emerged near $0.5050, causing a reversal in price direction. Subsequent movements below key support levels, including $0.4980 and $0.4950, indicate growing bearish pressure on XRP.
Resistance Levels and Potential Upside
While the price is currently trading just above the 50% Fib retracement level, it is still struggling to surpass the $0.500 mark and the 100-hourly Simple Moving Average. Resistance levels near $0.4920, $0.4950, and $0.500 pose significant barriers to any potential upside movement. Only a close above the $0.500 resistance zone could pave the way for further gains, with key resistance levels at $0.5050, $0.5250, and $0.5350.
Downside Risks and Support Levels
Should XRP fail to clear the $0.4950 resistance zone, the price is likely to face continued downward pressure. Initial support is expected near the $0.480 level, followed by a more crucial support level at $0.4740. A downside break and close below $0.4740 could trigger a sharper decline, potentially retesting the $0.4550 support in the near term.
Technical Indicators and Market Sentiment
Key technical indicators, such as the MACD and RSI for XRP/USD, point towards a bearish outlook. The MACD is gaining pace in the bearish zone, while the RSI is below the 50 level, reflecting growing negative sentiment among traders. Major support levels at $0.4800 and $0.4740, along with major resistance levels at $0.4950 and $0.5050, will be critical in determining the future price movement of XRP.
The recent bearish movement in XRP price highlights the challenges faced by the cryptocurrency in maintaining a positive trend. With key resistance levels proving difficult to overcome and downside risks looming, XRP traders should exercise caution and closely monitor support and resistance levels to make informed trading decisions.
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