Ripple began a significant decline against the US dollar below the support zone of $ 0.5000. XRP price even broke the USD 0.4500 support and it seems that there is a likelihood of further losses.
- Ripple began a steady decline below the $ 0.5000 and $ 0.4800 levels against the US dollar.
- The price is now trading well below $ 0.4750 and the simple moving average of 100 (4 hours).
- A deep bearish channel is forming on the 4-hour chart of the XRP / USD pair (data source from Kraken) with resistance near USD 0.5330.
- The pair should continue to decline if there is a significant break below the $ 0.4350 level.
Ripple’s XRP price is gaining bearish momentum
Yesterday we discussed the chances of a sharp drop in Ripple’s XRP price below $ 0.4750. There was no recovery wave and the price began to drop sharply below the $ 0.4800 and $ 0.4750 support levels.
There was a pause under the $ 0.4500 support and the price was well below the 100 simple moving average (4 hours). A new monthly low is being formed near $ 0.4352 and the price is currently consolidating losses. Initial resistance to the upside is near the $ 0.4650 level.
The first major resistance is near the $ 0.4720 level. It is close to the 50% Fib retracement level of the move down from the high of $ 0.5944 to the low of $ 0.4352.
Source: XRPUSD on TradingView.com
The main resistance is now forming near the $ 0.5000 zone. A heavily bearish channel is also forming on the 4-hour chart of the XRP / USD pair with resistance near USD 0.5330. Unless there is a recovery wave above $ 0.4650 or $ 0.4720, there is a risk of further decline.
The next major support is near the $ 0.4200 level. Further losses could move the price towards the $ 0.4000 support zone in the short term.
Restore in XRP?
If the ripple triggers a decent recovery wave above the $ 0.4650 resistance, the bulls could seek control. A significant break above the $ 0.4650 and $ 0.4720 levels could trigger a decent rebound.
To get into a positive zone, the price must be above the $ 0.5000 level. A closing price above $ 0.5000 will most likely bring the price to the $ 0.5500 level.
4 Hour 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 trying to bounce back from the oversold zone.
Major support levels – $ 0.4350, $ 0.4200, and $ 0.4000.
Main Resistance Levels – $ 0.4650, $ 0.4720, and $ 0.5000.