Ripple started a major decline after it broke the USD 0.5300 support against the US dollar. XRP price is now trading well below USD 0.5000 and it could continue to decline towards USD 0.4200.
- Ripple started a strong decline well above the USD 0.5300 support zone against the US dollar.
- The price is now trading well below USD 0.5000 and the simple 100 (4 hours) moving average.
- There was a break below a significant downward channel with support near USD 0.5400 on the XRP / USD pair’s 4-hour chart (Kraken data source).
- The pair is gaining bearish momentum and it could continue to decline towards USD 0.4300 or USD 0.4200.
Ripple’s XRP price is gaining bearish momentum
After a sharp spike towards USD 0.6500, Ripple’s XRP price started to decline steadily. The price traded below the USD 0.6000 and USD 0.5500 support levels. Recently there was a sharp decline in it bitcoin and Ethereum, resulting in more losses in XRP.
There was a crucial downside break below the USD 0.5300 support level and the simple 100 (4 hours) moving average. There was also a break below a major channel downward with support at $ 0.5400 on the XRP / USD pair’s 4-hour chart.
Source: XRPUSD on TradingView.com
The pair moved below the USD 0.5000 support level and traded below the 50% Fib retracement level of the upward move from the USD 0.4391 swing low to USD 0.6585 high.
It opened the doors for more losses below $ 0.4800. XRP price is now trading below the 76.4% Fib retracement level of the key upward move from the $ 0.4391 swing low to $ 0.6585 high. Even more losses could push the price towards USD 0.4500. The next big support is near the USD 0.4300 level, below which the price could even test USD 0.4200.
Benefits limited in XRP?
When ripple starts a recovery wave, it could face many hurdles starting at $ 0.5000. The first major resistance for the bulls is near the USD 0.5250 and USD 0.5300 levels (the recent breakdown zone).
The main resistance is now forming near the USD 0.5500 level and the 100 simple (4 hours) moving average. A close above the USD 0.5300 and USD 0.5500 levels could initiate another rally into the USD 0.6500 zone.
4-Hours MACD – The MACD for XRP / USD is gaining momentum in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for XRP / USD is now well below the 50 level.
Key Support Levels – USD 0.4500, USD 0.4300 and USD 0.4200.
Key Resistance Levels – USD 0.5000, USD 0.5300 and USD 0.5500.