XRP retested the $ 0.7500 resistance level before dropping sharply against the US Dollar, similar to BTC and ETH. According to Aayush Jindal’s analysis, XRP price holds the $ 0.5500 support, but it can test even $ 0.5000.
XRP launched a strong downside correction when it failed to clear $ 0.7500 against the US Dollar.
The price broke the $ 0.6000 support but still well above the 100 simple moving average (4 hours).
A break occurred under a key contracting triangle formation with support near $ 0.6465 on the 4-hour chart of the XRP / USD pair (based on Kraken data).
The pair may regain the main $ 0.5000 support before a new increase in the near term.
XRP Approaches Key Levels
A strong rejection pattern formed around $ 0.7200 and $ 0.7500 at the XRP price. The price started a strong decline and broke many supports near the $ 0.6200 level.
Recently, the crypto market saw a hard correction with a strong drop in Bitcoin and Ethereum. XRP followed a similar pattern, dropping over 10% to below $ 0.6000. There was also a break under a key contracting triangle formation with support near $ 0.6465 on the 4-hour chart of the XRP / USD pair.
The pair even broke the $ 0.5800 support zone but still well above the 100 simple moving average (4 hours). It rose below the 50% Fib retracement level of the bullish wave from $ 0.4085 to $ 0.7876.
It is currently trading near the $ 0.5500 support level. The 61.8% Fib retracement level in the upward wave also serves as a support in the price move from $ 0.4085 to $ 0.7876.
If further losses occur, the price could drop below the $ 0.5500 and $ 0.5400 levels. The next major support lies at $ 0.5000 where the bulls are likely to take a strong stand.
Recovery is Possible If It Remains Above $ 0.5500
If XRP stays above the $ 0.5500 support, it could recover higher. Initial resistance on the upside is near the $ 0.5850 and $ 0.6000 levels.
A clear break above the $ 0.6000 resistance level could open the doors for a new high. In the situation mentioned, the price is likely to rise steadily towards the $ 0.6500 level.
Technical Indicators
4-Hour MACD – The MACD for XRP / USD is losing momentum in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for XRP / USD is currently near the 50 level.
Major Support Levels – $ 0.5500, $ 0.5200 and $ 0.5000.
Major Resistance Levels – $ 0.5850, $ 0.6000 and $ 0.6500.
