XRP, the cryptocurrency associated with Ripple, is currently attempting a fresh increase after finding support near the $0.4730 zone against the US Dollar. Despite this bullish move, the price is facing significant hurdles and may climb towards $0.5320 if it manages to overcome these obstacles.
XRP has been struggling to gain momentum and break above the key resistance level at $0.5065 against the US Dollar. The price is currently trading below $0.500 and the 100 simple moving average (4 hours), indicating a bearish sentiment prevailing in the market.
Bulls Show Signs of Strength
Despite the ongoing struggle, there are signs of strength from the bulls. A major bearish trend line near $0.4915 was broken on the 4-hour chart of the XRP/USD pair, suggesting a potential shift in momentum. Additionally, XRP managed to break above the 23.6% Fib retracement level of the main drop from the $0.5510 swing high to the $0.4730 low.
Immediate Resistance and Potential Upside
Although the bears remain active above the $0.500 resistance zone, XRP’s immediate resistance is near the $0.500 level. In the event of a successful breakthrough, the first major resistance lies at $0.5065, followed by the 100 simple moving average (4 hours) and the 50% Fib retracement level. A close above the $0.5065 level could potentially trigger a price surge towards the $0.521 resistance.
However, if XRP fails to clear the $0.5065 resistance zone, it could face further downward pressure. The initial support on the downside is near $0.488, with the next major support level at $0.4730. A downside break and close below $0.4730 could accelerate the price decline, with the $0.4320 support zone being the likely target.
The MACD for XRP/USD is currently losing pace in the bullish zone, indicating a potential shift in momentum. On the other hand, the RSI for XRP/USD is currently above the 50 level, suggesting that there may still be some bullish strength left in the market.
XRP is facing significant obstacles in its attempt to gain momentum against the US Dollar. While there are signs of strength from the bulls, the resistance at $0.5065 remains a major hurdle. If the bulls manage to overcome this resistance, the price could see a substantial increase towards the $0.550 level. However, failure to break above the resistance may result in further downward pressure, with support levels at $0.488 and $0.4730. Traders should closely monitor these levels and look for decisive price action before making any trading decisions.
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