XRP, the native cryptocurrency of the Ripple network, has experienced significant volatility in recent times. After reaching a high near the $0.74 mark, XRP price faced rejection, leading to a downward correction.
XRP started its downside correction below the key support levels of $0.65 and $0.62. The price currently trades below $0.64 and the 100 simple moving average (4 hours). This correction put XRP in a weaker position compared to Bitcoin and Ethereum. However, the price found support near $0.572, forming a low, and is now attempting a fresh increase.
The price of XRP witnessed a breakthrough with the help of a major bearish trend line, previously providing resistance near $0.608. This breakthrough occurred on the 4-hour chart of the XRP/USD pair using data from Kraken. As a result, the price is currently testing the 23.6% Fibonacci retracement level of the previous downward move.
On the upside, the immediate resistance level is near $0.615. The first major resistance lies at the $0.642 zone, which coincidentally aligns with the 100 simple moving average (4 hours). This resistance level closely matches the 50% Fibonacci retracement level. A close above the $0.642 resistance zone could potentially lead to a steady increase in price. The next significant resistance level to overcome is near $0.682, which could result in a rally toward the $0.720 mark. If XRP manages to gain further momentum, the $0.750 resistance level becomes a possible target.
If, however, XRP fails to clear the $0.642 resistance zone, it may begin a fresh decline. Initial support on the downside is expected near the $0.588 zone, followed by the next major support level of $0.572. A downside break below $0.572 might accelerate the downward move, possibly leading the price to retest the $0.540 support zone.
The MACD (Moving Average Convergence Divergence) for XRP/USD is currently gaining pace in the bullish zone, indicating a potential upward movement in price. Similarly, the RSI (Relative Strength Index) for XRP/USD is slightly above the 50 level, suggesting a neutral-to-bullish sentiment.
XRP price has experienced a significant downside correction after failing to sustain above the $0.74 resistance zone. However, the price has found support and is now attempting a fresh upward movement. The breakthrough of a major bearish trend line and the positive technical indicators indicate the possibility of a bullish momentum. Nevertheless, caution is advised as XRP still faces key resistance levels that need to be cleared for a sustained price increase. Conversely, failure to surpass these resistance levels might result in further downward pressure. Traders and investors should closely monitor the support and resistance levels mentioned to make informed decisions regarding XRP.
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