- XRP price registered further declines, having traded below the crucial $0.50 mark.
- The digital asset tested the $0.4700 support level and is endeavoring a minor recovery.
- An upward break was observed over a bearish trend line with resistance at $0.4800 on the hourly chart of the XRP/USD pair.
XRP shows signs of recovery, but faces significant resistance levels.
XRP Locates Key Support
XRP struggled to gain traction above the $0.4880 resistance level, mimicking the behavior of Ethereum and Bitcoin. The cryptocurrency continued to lose ground, reaching below the $0.480 threshold until it touched the $0.4700 zone. Marking a low at $0.4701, XRP appears to be initiating a short-lived recovery.
The price advanced past $0.4750 and surpassed the 23.6% Fibonacci retracement level derived from the downward movement, ranging from $0.5053 at its peak to $0.4701 at the trough.
Additionally, the price overcame a bearish trend line with resistance at $0.480 on the hourly chart, although it remains below $0.4850 and the 100-hourly Simple Moving Average.
Currently, resistance lies near the $0.4850 mark. The first substantial resistance level is positioned around $0.4880, corresponding to the 50% Fibonacci retracement level from the $0.5053 high to the $0.4701 low. A subsequent resistance barrier exists near $0.4920.
A definitive break above the $0.4920 resistance area might propel the price upwards, potentially reaching the pivotal $0.50 resistance. A sustainable rise above $0.50 could push the price towards $0.5050, with further gains aiming for $0.5250.
Potential for Additional Declines?
Should XRP fail to surpass the $0.4850 resistance level, downward movement could ensue. Preliminary support on the downside stands at $0.4750.
The key subsequent support level is found at $0.470. A break below this level, coupled with a closing price under $0.470, might expedite further declines. In this scenario, XRP’s price could revisit the $0.4550 support level in the short term.
Technical Insights
Hourly MACD – The MACD indicator for XRP/USD is currently decelerating within the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD remains below the 50-point threshold.
Critical Support Levels – $0.4750 and $0.4700.
Key Resistance Levels – $0.4850 and $0.4920.
Conclusion
XRP’s price continues to face challenges in breaking above important resistance points while showing minor recovery attempts. Investors should closely monitor the $0.4850 and $0.4880 resistance levels for potential upward movements. Conversely, a failure to maintain support at $0.470 could lead to additional declines towards $0.4550. The crypto market remains volatile, necessitating careful analysis and strategic planning for potential price actions.
